Changes to the FBT rate

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Changes to the FBT rate

3/2/2016 9:22:35 AM

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From time to time the Fringe Benefits Tax (FBT) exemption cap limit can change as a result of Federal Budget announcements. From 1 July 2014 the FBT rate moved from 47% to 49% effective for a two year period (1 April 2015 to 31 March 2017).

The below tables shows the new grossed up rates along with the new capped limits:

 

 

FBT year

FBT rate

Type 1 gross-up rate

Ending 31 March 2014 (and prior years)

46.5%

2.0647

Ending 31 March 2015

47%

2.0802

Ending 31 March 2016 and 31 March 2017

49%

2.1463

Ending 31 March 2018 onwards

47%

2.0802

Does this affect my salary packaging account?

If you are eligible for and currently salary packaging the FBT exemption cap there is no immediate impact to your salary packaging account. However, because the cap limit has been slightly reduced you may reach your cap limit earlier in the FBT year which will leave you with extra funds to be used outside the cap if you would like. 

Do I need to do anything?

We recommend you review your salary packaging contributions via your My Account to determine if you would like to make any changes to your amounts.

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