The FBT Report assists the employer in providing all the relevant details in determining the Fringe Benefit Value of vehicles held during the current FBT Year. Autopia has attempted to obtain a Fringe Benefit declaration from each of your employees on Autopackage.
You should verify that you have collected either sufficient post-tax Employee Contributions to eliminate the Fringe Benefit Value and/or sufficient pre-tax FBT Allowance Contributions to cover the FBT value of each vehicle.
If you have been using Post-tax Employee Contribution method:
Run a payroll report to determine the total post-tax Employee Contributions collected between the FBT year start date (column R) and the FBT year-end date (column T).
Ascertain whether the total Employee Contributions are equal to or more than the Fringe Benefit Value.
If they are equal, you have successfully eliminated any Reportable Fringe Benefit on the vehicle and there is no FBT payable.
If they are less than the Fringe Benefit Value you will either need to:
Make a one-off payroll adjustment to adjust the post-tax Employee Contributions retrospectively, effectively eliminating the Fringe Benefit liability and any resulting FBT on the car. (You can use our FBT Calculator to assist with this – download here) OR
Declare the resulting FBT liability on the vehicle in the company FBT return. FBT payable is calculated using the following formula:
(Gross Fringe Benefit Value – post-tax Employee Contributions for the FBT year) x 0.47 x 2.0802
Deduct the value of the FBT from the Employee’s pre-tax salary in the next available payroll (if possible).
If you have been using Gross Up/Pre-tax FBT Allowance method:
Calculate the FBT liability on the vehicle using this formula:
(Gross Fringe Benefit Value – pre-tax FBT Allowance Contributions for the FBT year) x 0.47 x 2.0802.
Include this vehicle in your FBT return. Employer will incur FBT on this vehicle.
Run a payroll report to determine the total pre-tax FBT Allowance Contributions collected between the FBT year start date (column R) and the FBT year-end date (column T).
If the total pre-tax FBT Allowance Contributions collected is more than the FBT liability on the vehicle, you may choose to credit any surplus to the Employee pre-tax in the next payroll.
If the total pre-tax FBT Allowance Contributions collected is less than the FBT liability on the vehicle, deduct the deficit amount from the Employee pre-tax in the next payroll.
Due to the timing of employer’s payroll, Autopia’s invoice cycle, days available in the FBT year and a range of other factors, employee’s salary deductions will rarely exactly match the Fringe Benefit Value of the vehicle.
There is no concern for alarm here and any mismatch can be managed by following the instructions in Q2.
It is the employer’s responsibility to communicate any salary adjustments to the employee concerned. If employees seek further clarification having spoken to employer’s payroll, they can contact Autopia Driver Support Team on 1300 608 955 for further information.
You must lodge a fringe benefits tax (FBT) return if you have a liability during an FBT year (1 April to 31 March). If your liability is nil, the ATO suggests to complete the Notice of non-lodgment – Fringe benefits tax form. This will avoid the ATO seeking a return from you at a later date.
Days unavailable occur when an employee makes a statutory declaration that the vehicle was unavailable for private use.
As a general rule, unavailability occurs when the employee or any associate (either your family or other staff) does not have access to the vehicle. In all cases, unavailability commences from the first whole day that the vehicle was not available for use (midnight to midnight).
Some common examples of days unavailable are:
The vehicle is garaged at the employer’s premises whilst the employee is on holidays or away on business. The keys are held by the employer and the vehicle is not available for private use by any other staff or associate.
The vehicle is at a smash repairer after an accident.
The vehicle is in a workshop for extensive repairs, commonly, a significant warranty repair. However, a vehicle is considered to be available for private use where it is in the workshop for routine servicing or maintenance
Autopia has not verified the legitimacy of claimed days unavailable as this is ultimately Employer’s responsibility.