Due to legislation changes, a number of Fringe Benefits Tax (“FBT”) rates will increase with effect from 1 April 2015.
The information below summarises the rate increases for the 2016 FBT year (1 April 2015 – 31 March 2016).
|
Rate |
Current FBT Rate |
Revised FBT Rate |
| FBT Rate |
47% |
49% |
| Type 1 Gross Up Rate |
2.0802 |
2.1463 |
| Type 2 Gross Up Rate |
1.8868 |
1.9608 |
As a result of this change it is recommended that Faculties and Divisions take this opportunity to review the fringe benefits they provide, as the University may be required to pay a higher amount of FBT on benefits provided to employees from 1 April 2015.
Prior to providing benefits that attract FBT to employees the cost implications should be considered, along with whether this continues to be the most practical method of providing the benefit to the employee.
Salary packaging arrangements will also need to be re-evaluated to have effect from 1 April 2015 and possibly adjusted to account for the change in the salary packaging gross up rates.
If you have any questions, see your Finance Manager or email the Tax Team taxhelpdesk@adelaide.edu.au
