Reportable Fringe Benefits
A reportable fringe benefit is simply the ‘grossed-up’ taxable value of the fringe benefit provided and is the amount shown on the employee’s payment summary. ‘Grossing-up’ involves applying a specific formula to the value of the fringe benefit received.
Your employer is required to include such reportable fringe benefits amounts on your payment summary. Examples where reportable fringe benefits are added to your other income are for the purpose of determining:
– Medicare levy surcharge
– Child support payments
– Higher Education Loan Program (HELP) repayments, or
– Government co-contribution.
Adjusted fringe benefits are effectively reportable fringe benefits ‘grossed-down’ for the effect of the fringe benefits tax. Examples where adjusted fringe benefits are added to your other income are for the purpose of determining:
– Family Tax Benefit
– Child Care Benefit, or
– The Parental Income Test for Youth Allowance
Article originally appeared at https://yourfinancialwellness.com.au/
Any advice given is of a general nature only and does not take into consideration your personal circumstances. Please consider the appropriateness of the advice before acting.