Hello ATO community,
Long-time listener, first-time caller.
I am an accountant for a not-for-profit that is registered to receive the 47% FBT rebate.
We had an employee start a new novated lease contract with a new novated lease provider about this time last year.
In order to remove their FBT liability, the employee elected to make employee contributions towards the lease vehicle as part of their agreement with the novated lease provider. The novated lease provider, unaware of our rebate status, calculated the employee contributions as though the employee would have the full FBT payable instead of the reduced amount. The novated lease company has since been made aware of this issue and have reduced the employee contributions to the amount the employee would owe after the rebate has been applied, however it doesn't take into account the excess amount the employee contributed in the prior year.
My questions are:
1). Does the excess employee contribution from the prior year (basically enough to cover the FBT liability for the new FBT year) rollover?
2). If yes, what is the best way to report/track this excess amount? Should it be done by the employer or the novated lease provider?
Thanks for your advice
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