2008 FBT DEVELOPMENTS
18 April 2007
The ATO has begun releasing determinations which will impact on your 2008 FBT compliance activities. It is recommended that you record and implement these changes as and when they are released by the ATO. Future newsletters will provide details as and when the ATO releases them.
Exemption reporting threshold
The exemption threshold for the fringe benefits tax (FBT) year commencing 1 April 2007 is $6,614. This replaces the amount of $6,391 that applied in the previous year commencing 1 April 2006.
Valuing residual benefits
The rates to be applied where the cents per kilometre basis is used for the fringe benefits tax (FBT) year commencing on 1 April 2007 are:
Engine capacity Rate per kilometre
0-2500cc 41 cents
Over 2500cc 49 cents
Motor cycles 12 cents
Living away from home allowance
The amounts listed below are acceptable as a food component for the fringe benefits tax (FBT) year commencing 1 April 2007. The amounts result from the indexation of the previous year's food component.
per week
One adult $206
Two adults $330
Three adults $370
Two adults and one or two children $370
Two adults and three children $432
Three adults and one child $432
Three adults and two children $493
Four adults $493
Benchmark interest rate
The benchmark interest rate for the fringe benefits tax (FBT) year commencing 1 April 2007 is 8.05 per cent per annum. This rate replaces the rate of 7.30 per cent that has applied for the previous FBT year commencing 1 April 2006.
The rate of 8.05 per cent is used to calculate the taxable value of:
•
a fringe benefit provided by way of a loan; and
•
a car fringe benefit where an employer chooses to value the benefit using the operating cost method.