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Surm(Initiate)Initiate
27 Feb 2024

Hello,


I would like some assistance in understanding the reportable fringe benefit amount (RFBA) that is reported to the ATO at the end of the financial year by the employer.


  • I have an EV through a novated lease arrangement.
  • Novated lease premiums and the running costs of the EV are paid from the pre-tax amount of my salary (salary sacrificing).
  • EV is exempt from FBT, therefore, there is no post-tax contribution towards running costs.


Will there be a reportable fringe benefit amount (RFBA) in this case? If there is, how would that be calculated? Assume that the novated lease premiums are $20,000 (including GST) and running costs are $2,000 (Including GST) a year.



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Bruce4Tax(Taxicorn)Taxicorn
27 Feb 2024


Will there be a reportable fringe benefit amount (RFBA) in this case?


Yes - all explained here:


https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/fbt-on-cars-other-vehicles-parking-and-tolls/electric-cars-exemption


Surm(Initiate)Initiate
28 Feb 2024

Hi @Bruce4Tax,


I had looked at that link before, however, the calculation is not clear to me when it comes to novated leases. The above link is not solely about novated leases. My question is specifically about when the EV is through the novated lease.


For example, if you were my employer's accountant, what would the RFBA amount you would calculate to be, based on the numbers given in my post?

Bruce4Tax(Taxicorn)Taxicorn
28 Feb 2024

See Step 3 in https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/fbt-registration-lodgment-payment-and-reporting/reportable-fringe-benefits#ato-Step3Calculatethereportablefringebenefitsamount


You need to ask your employer how they are working it out.


Most likely they are using statutory method to determine the fringe benefit value of the car - unless you are completing log books.


If statutory method, FB value = cost of car x 20 %


You could try this for an estimate:


https://www.ato.gov.au/calculators-and-tools/fringe-benefits-tax-car-calculator



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