Fringe Benefits Tax (FBT) and your Tax Return

When it comes to Fringe Benefits Tax (FBT)-exempt benefits such as self-education fees, you cannot claim any extra deduction in your tax return. The reason is, you’ve already received the full tax benefit for these expenses.

Read on for an explanation on Reportable Fringe Benefits, and what you should include on your tax return.

What to Include on Your Return

‘Reportable Fringe Benefits’ apply to all salary packaging benefits and need to be included on your tax return. They should be recorded as a separate item on the annual payment summary from your employer (if the value exceeds $2,000).

'Reportable Fringe Benefits' and ‘Grossed-Up Taxable Value’ Explained

With the exception of exempt benefits, each fringe benefit has a Reportable Fringe Benefit value, which is shown as a grossed-up taxable value (GUTV), on your payment summary. The GUTV of a benefit is the salary that you would have to earn in order to purchase the benefit from after-tax dollars.

Potential Impact of Fringe Benefits

The benefits you choose to salary package may impact some income-tested government assistance and concessions. For example, the fringe benefits reported on your payment summary may be used to calculate liability for child support or HECS/HELP repayments.

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