Fringe Benefits & Payment Summaries

July 8, 2016
Parking Expenses
July 8, 2016

Employers are required to keep records of the value of any fridge benefits given to employee and associates, but only need to show these benefits on the employee’s payment summary if their taxable value exceeds $2,000 in an FBT year (1 April to 31 March).

Benefits provided to any of the taxpayer’s associates (for example, spouse or children) in respect of their employment will be included as fridge benefits provided to them. Prior to 1 April 2007 this threshold amount was $1,000.

The employer grosses up the value of benefits provided using the FBT rate equal to the highest marginal rate of income tax plus Medicare levy (currently 46.5%). Therefore, a fringe benefit with a taxable value of $2,001 becomes a reportable Fridge Benefit amount of $3,740.

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