FBT Gross-up Rates 2009-2010
FBT is imposed on the grossed-up taxable value of the benefits provided, subject to a number of exemptions and reductions.
Unlike other taxes, the FBT year runs from 1 April to 31 March.
The following rates apply for the FBT year ending 31 March 2010:
| Gross-up rate | FBT year ending 31/3/2010 | Explanation |
| Type 1 Higher gross-up rate |
2.0647 | This rate is used where the benefit provider is entitled to a GST credit in respect of the provisions of a benefit. |
| Type 2 Lower gross-up rate |
1.8692 | This rate is used if the benefit provider is not entitled to claim GST credits. |
Regardless of whether the benefits provided are type 1 or type 2, only the lower gross-up rate is used for reporting on employees’ payment summaries.
More Information
The Tax Office FBT guide for employers provides a pretty extensive overview for business owners on various fringe benefits and their reporting obligations.
FBT can be a tricky area. If you have any concerns, or simply do not understand your obligations, you should speak with your accountant.
This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.