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March 23, 2014

FBT Rate increases 1st April 2014

The current FBT rate of 46.5% will increase from 1 April 2014 to 47% and whilst FBT expense for full FBT paying organisations will obviously increase, it’s important that Public Benevolent Institutions (PBI’s) also understand the implications with regard to grossing up factors and consequential changes to any salary deductions for leased vehicles. 

In line with the increase in the FBT rate to 47% from 1 April 2014, the Type 1 (employer entitled to an input tax credit) and Type 2 (employer not entitled to an input tax credit) gross-up rates will also be amended:

Gross-Up Rate Changes

FBT Year

Type 1 Rate

Type 2 Rate

2013-2014

2.0647

1.8692

2014-2015

2.0802

1.8868


 

The Grossed-Up Capping Thresholds remain the same at $30,000 and $17,000 for respective tax concession status entitlements

Therefore the annual fringe benefit dollar limits based on whether an employee is salary packaging Type 1 or Type 2 benefits are as follows: 

Annual Fringe Benefit Dollar Limit

– $30,000 Threshold

FBT Year

Type 1 Benefits

Type 2 Benefits

2013-2014

$14,529.96

$16,049.65

2014-2015

$14,421.69

$15,899.94

 

Annual Fringe Benefit Dollar Limit

– $17,000 Threshold

FBT Year

Type 1 Benefits

Type 2 Benefits

2013-2014

$8,233.64

$9,094.80

2014-2015

$8,172.29

$9,009.96

For more information on how this may impact your salary and vehicle lease, contact Street Fleet or your salary packaging provider. 

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