Recording Fringe Benefit Amounts

If a payee has received benefits in place of salary and wages and if those benefits are subject to Fringe Benefits Tax (FBT), the value of those benefits may need to be reported to the ATO. So that the benefits can be reported, the value of the benefits that are subject to FBT must be defined on the Payee record.

To record the payments that are subject to FBT, you must add a set of FBT details to the Payee record. To do this you must:

• specify the start date of the FBT year in which the reportable benefits were received by the payee (this must be 1 April of the relevant calendar year)

• specify the end date of the FBT year in which the reportable benefits were received by the payee (this must be 31 March of the following calendar year)

• specify the grossed-up, year-to-date total value of reportable, taxable fringe benefits provided to the payee in the corresponding FBT year

• if applicable, specify the grossed-up, year-to-date value of reportable, exempt fringe benefits provided to the payee in the corresponding FBT year.

How Are FBT Amounts Reported?

The FBT year runs from 1 April to 31 March of the following year.  When an STP end of financial year (EOFY) submission is transmitted to the ATO, if there is a set of FBT details with an FBT year end date that falls within the financial year that is being finalised, the reportable fringe benefit amounts defined by that set of FBT details will be reported to the ATO. The FBT details are reported regardless of whether the payee has received any other taxable payments in the corresponding financial year. For example, if a payee received reportable fringe benefits between 1 April 2019 and 30 June 2019 but the payee did not subsequently work after 30 June 2019, the fringe benefits will be reported in the STP EOFY submission for the 2019-20 tax year even though there will be no reportable gross payments or tax withheld.

This is in accordance to ATO requirements whereby the reportable fringe benefits amount for an income year (1 July to 30 June) is the value of the reportable fringe benefits provided in the previous FBT year (1 April to 31 March).

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