Private Travel & Fringe Benefits Tax
According to the Fringe Benefits Tax (FBT) Assessment Act 1986 where the University, or a third party under an arrangement with the University, pays for or reimburses an Employee's travel expenses, FBT will be payable where the private component of the travel is considered to be more than incidental to the business activities.
Decrease to FBT Rate - 1 April 2017
Due to legislation changes, a number of Fringe Benefits Tax (“FBT”) rates have decreased with effect from 1 April 2017.
The information below summarises the rate decreases for the 2018 FBT year (1 April 2017 – 31 March 2018).
|Rate||Current FBT Rate||Revised FBT Rate|
|Type 1 Gross Up Rate||2.1463||2.0802|
|Type 2 Gross Up Rate||1.9608||1.8868|
Salary packaging arrangements will also need to be re-evaluated to have effect from 1 April 2017 and possibly adjusted to account for the change in the salary packaging gross up rates.
The rate change will also affect the RFBA (Reportable Fringe Benefit Amount) reported on the 2018 PAYG Payment Summaries for employees receiving fringe benefits.
If you have any questions, refer to your Faculty Finance & Planning Manager or to Division Finance.
For more information on FBT and how it could apply to you, click on the links below;
- FBT and Private Travel Guidelines
- FBT and Private Travel FAQ's
- FBT and Private Travel Calculator
- Travel Diary
Note: A Travel Diary needs to be completed when travelling within Australia for more than 5 consecutive nights in duration and for all International Travel.