Remunerator News

Jan 9 2014

Changes to the FBT Rate

With the introduction of the National Disability Scheme, the Federal Government announced an increase in the Medicare Levy from 1.5% to 2% to take effect in 2014.

This 0.5% increase has further consequential impacts to other taxes that reference the Medicare rate, including the Fringe Benefits Tax rate.

As the Medicare rate is included in the FBT Rate, Gross Up Factors and Threshold Limits, there will be a decrease in the tax free threshold available to Health, Charitable and Rebate Industry Employees effective from 1 April 2014.

Threshold Limit

1 April 2013 to 31 March 2014

New Threshold Limit

1 April 2014 onwards

$16,049.65

$15,899.94

$9,094.80

$9,009.97

 

The figures above outlines the new tax free threshold you will be eligible to salary package in 2014-15. Further information regarding the effect to your individual benefit deductions and payments will be provided to you shortly.