Private ruling: Reportable fringe benefits
Published: August 2012
Date scheme commenced: 1 July 2011

Ruling: Q1:  | A1: Yes.

Relevant facts and circumstances: In October 2010 you commenced 12 months leave on half pay. Through your work you salary package to a salary sacrifice organisation (SSO). While you were on leave your payments continued to accrue within the SSO and they paid the accrued amount to your account in May 2011.


Reasons for decision: Summary: The general rule in section 135P of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) is that an employee has a reportable fringe benefits amount for the financial year ending 30 June if the employee's individual fringe benefits amount calculated in the fringe benefit year ending on 31 March is more than $2,000. Example 1 of subsection 135P(1) of the FBTAA explains that where the employer provides an employee with a fringe benefit of $2,545 on 31 May 2007 the employer is providing a fringe benefit for the year of tax ending 31 March 2008. The employee therefore has a reportable fringe benefits amount for the year of income ended 30 June 2008. Paragraph 16-155 (1)(c) of Schedule 1 to the Taxation Administration Act 1953 (TAA) requires that where reportable fringe benefits are provided by an employer entity to an employee during a financial year, then the employer entity is obliged to furnish to the employee a payment summary. Paragraph 16-155 (2)(b) of Schedule 1 to the TAA requires that the payment summary cover the reportable fringe benefits amount given by the payer to the recipient. Your case is similar to that in example 1 of subsection 135P(1) of the FBTAA where your employer provided you a fringe benefit payment in May 2011 which is in the year of tax ending 31 March 2012 and therefore is included as a reportable fringe benefit amount in your payment summary for the year ended 30 June 2012. There is no provision within tax legislation to allow the Commissioner to change the date a fringe benefit payment has been made when the actual date of the fringe benefit payment is correctly recorded on a payment summary.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Subject: Reportable fringe benefits: Question: Are the payments received from the salary sacrifice provider reportable in the 2011-12 financial year? | This ruling applies for the following periods: Year ended 30 June 2011 Year ended 30 June 2012 The scheme commenced on | SSO's financial year runs from 1 April to 31 March each year and therefore the amount they paid you in May 2011 was included in your payment summary as a reportable fringe benefit for the 2011-12 financial year. Relevant legislative provisions Taxation Administration Act 1953 section 16-155 to schedule 1 Fringe Benefits Tax Assessment Act 1986 section 135P Fringe Benefits Tax Assessment Act 1986 subsection 135P(1)