The employee must include the reportable fringe benefits amounts in their tax return. Be careful before deleting records from the payroll system of employees who terminate between 1 April and 30 June each year. As the FBT year runs from 1 April to 31 March, it is possible that they may need to be issued with a payment summary the following year just showing a reportable fringe benefit amount and nothing else. Last year staff complained about the amount. By law, an employer must disclose an amount where the threshold is exceeded.
Most issues seem to have arisen where there was shared use of a benefit, e.g. cars.
It is important that all employers have a clear policy notified to staff on how they intend to allocate such benefits. It is up to the employer to determine a policy that must be fair, but ensure there is a full allocation. Other FBT issues. This applies to any benefits provided from that date. One issue with the introduction of this cap is that it extends not only to benefits that are reportable, but also to some of the benefits that are excluded from reporting.