Aug 21 2014
Payment Summary Reporting for your Salary Package or Novated Lease
Well it is the Tax Reporting Season once again and each of you will all have received your Payment Summary from your Employers.
The ATO requires that any fringe benefits you have received through the most recent FBT Year (1 April to 31 March) must be included on your Payment Summary.
The amount to be reported is called the “Reportable Fringe Benefits” which (Ed: just to confuse everybody!) is not easily identified to the actual amount paid in fringe benefits.
So if you had a Salary Package that had either a mortgage or Novated Lease included, there will be an amount included for Reportable Fringe Benefits.
For a Mortgage:
Reportable Fringe Benefit = Amount of Benefit Paid (Taxable Value) / (1 – FBT Rate)
For a Novated Lease:
Reportable Fringe Benefit = Value of the Car x Statutory Rate (Taxable Value) / (1 – FBT Rate)
The amount recorded in the Reportable Fringe Benefits Tax box is not used to calculate your Income Tax Liability. However, it can be included in a number of income tests relating to government benefits and obligations such as Child Support payments, Medicare Levy, HECS repayments and Superannuation Surcharge.
PLEASE NOTE: Where an individual’s fringe benefits amount is $2,000 or less there is no requirement for the employer to report the amount on the employee’s payment summary.