Private ruling: Fringe benefit
Published: September 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you assessable on the value of an item of property? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1936 Section 23L

Reasons for decision: Summary: Fringe Benefits Tax (FBT) is a tax payable by employers on the value of certain benefits known as fringe benefits that have been provided to their employees or to associates of those employees in respect of their employment. Employers are required to record on payment summaries the grossed up taxable value of certain fringe benefits provided to employees during the FBT year where the taxable value of the benefits provided to an employee exceeds $2,000. The reportable fringe benefits amount (that is, the individual's grossed up amount) is not assessable income to the employee but it is used to determine entitlement to certain income tested tax concessions and income tested surcharges for the year. The provision of the property to you by your employer constitutes a fringe benefit. Therefore the value of the property should not be included in the gross income on your PAYG payment summary and you are not assessable on the value of the property. The grossed up value of the property should be included on your payment summary as a reportable fringe benefits amount.

Your employer gave you an item of property. | You ceased working for the employer. | Your employer provided you with a PAYG summary showing that the value of the item of property as 'Gross Income'. | The employer has since stated that the PAYG summary should have shown the amount of the property as a Reportable Fringe Benefit.