Reportable Fringe Benefit is a fringe benefit provided by an employer which exceeds $2,000. The Reportable Fringe Benefit must be shown on the employee's payment summary and is taken into account in a number of government income tests.

The grossed up amount is reported on the employee's payment summary.

The FBT years is different to that of the Payroll calendar year and runs from 1^st April to the 31^st March

A fringe benefit is defined by the ATO as:

a 'payment' to an employee, but in a different form to salary or wages. Examples of benefits can include when en employer:

• allows an employee to use a work car for private purposes

• gives an employee a cheap loan

• pays an employee's gym membership

• provides entertainment by the way of free tickets to concerts

• reimburses an expense incurred by an employee, such as school fees

• gives benefits under a salary sacrifice arrangement with an employee.

There are many items that are excluded from Fringe Benefits, they include:        

2014-2015 will see a change in the FBT rate from 46.5% to 47%.

For a full table on previous, current and future FBT rates, click here

 The Government made changed to Fringe benefit reporting in 2006, which sore the rise in the threshold from $1,000 to $2,000. The new threshold was introduced in for the 2007-2008 payroll year. Any payments before 1

April 2007, reporting was based on payments that were $1,000 or greater.