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WHERE IN THE FBT ACT DOES IT STATE THAT THE FBT TAXABLE VALUE OF AN EXPENSE IS INCLUSIVE OF GST?

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Newbie

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Hi, in which section of the FBT Act does it actually state that the taxable value of a fringe benefit includes the GST (where applicable) in the cost of providing a benefit to an employee? If not, is it connected to definitions in the GST Act? If so, what section(s)?

Thanks in advance

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Community Support

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Hi @GaryO 

 

Thanks for contacting ATO Community,

 

FBT is separate from income tax and is calculated on the taxable value of the fringe benefits provided.

 

“When calculating the taxable value of the benefit, the full amount of the contribution (GST-inclusive amount) is used to reduce the taxable value of the benefit.” -can be found in our Fringe benefits tax – a guide for employers, under Use employee contributions.

 

A PDF version of this Guide is available here.

 

You can also learn more about FBT by checking out our webinars or watch our FBT video for more information.

 

I really hope this information helps and you all remain safe and well.

MariR

1 REPLY 1
Highlighted

Best answer

Community Support

Replies 0

Hi @GaryO 

 

Thanks for contacting ATO Community,

 

FBT is separate from income tax and is calculated on the taxable value of the fringe benefits provided.

 

“When calculating the taxable value of the benefit, the full amount of the contribution (GST-inclusive amount) is used to reduce the taxable value of the benefit.” -can be found in our Fringe benefits tax – a guide for employers, under Use employee contributions.

 

A PDF version of this Guide is available here.

 

You can also learn more about FBT by checking out our webinars or watch our FBT video for more information.

 

I really hope this information helps and you all remain safe and well.

MariR