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Reportable Finge Benefit Amount

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Newbie

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I am looking into entering into a Salary Sacrifice Arrangement in regards to a Novated Lease.

I am wanting to clarify whether I will have a reportable fringe benefit amount that will be recorded on my payment summary.

For example:
Gross Taxable income $66311
FBT Base Value $34053.95
Annual contribution by myself after tax $6810.79.

How am I meant to calculate or work out whether there will be a reportable fringe benefit.
I am interested as we are also entilted to FTB PART A and B and I know any reportable fringe benefit needs to be included and can gross up my total income higher than what my Gross Taxable Income was without the salary sacrifice arrangement.

Regards
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Most helpful response

Devotee

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Based on the information you have provided, you will not have a reportable fringe benefits amount.  This is because your after tax contributions reduce the taxable value of the fringe benefit (20% of the base value) to nil.

 

As some of the running costs come from your pre-tax income, your taxable income would be less than it was without the salary sacrifice. 

1 REPLY 1
Highlighted

Most helpful response

Devotee

Replies 0

Based on the information you have provided, you will not have a reportable fringe benefits amount.  This is because your after tax contributions reduce the taxable value of the fringe benefit (20% of the base value) to nil.

 

As some of the running costs come from your pre-tax income, your taxable income would be less than it was without the salary sacrifice.