Fringe benefit tax rulings, rates, and thresholds
This topic explains the fringe benefits tax (FBT) rates and thresholds for the 2018–19 to 2023–24 FBT years.
- An FBT rate of 47 applies across these years.
- The FBT year runs from 1 April to 31 March.
Tax determinations
Certain rates and thresholds are referenced from the relevant taxation determination. From the 2020–21 FBT year onwards, tax determinations will only be published for the following:
- A motor vehicle other than a car: cents per kilometre rate.
- Reasonable food and drink amounts for employees living away from home.
All other rates and thresholds will only be available here. You can find earlier record keeping rates and exemption thresholds on the ATO website.
Find out more about FBT for employers at www.ato.gov.au/law/view.htm.
Pay by instalments threshold
If your FBT liability for the last year was $3,000 or more, you'll need to pay your FBT by quarterly instalments.
FBT year | FBT rate |
|---|---|
Ending 31 ;March 2019, 2020, 2021, 2022, 2023, and 2024 | 47 |
Gross-up rates for FBT
- Type 1 – Higher gross-up rate: This rate is used where the benefit provider is entitled to a goods and services tax (GST) credit in respect of the provision of a benefit.
- Type 2 – Lower gross-up rate: This rate is used if the benefit provider is not entitled to claim GST credits.
Rate Type | FBT | Gross-up Rate |
|---|---|---|
Type 1 | 47 | 2.0802 |
Type 2 | 47 | 1.8868 |
Reportable Fringe Benefits Amounts and Grossing up
Only the lower gross-up rate is used for reporting on employees' income statements or payment summaries. This is regardless of whether the benefits provided are type 1 or type 2.
tip
Work out how to calculate your FBT at the ATO website.
Reportable fringe benefits
If you provide certain fringe benefits with a total taxable value of more than $2,000 during the FBT year, you must report the grossed-up taxable value of the fringe benefits on the employee's income statement or payment summary for the corresponding income year.
Reportable fringe benefits are grossed-up using the lower gross-up rate. So, for example, if an employee receives certain fringe benefits with a total taxable value of $2,000.01 for the FBT year ending 31 March 2022, the reportable fringe benefits amount is $3,773.
Reportable fringe benefits thresholds
Threshold for reporting on income statements or payment summaries | FBT years ending 31 March 2019, 2020, 2021, 2022, and 2023 |
|---|---|
Taxable value | Exceeds $2,000 |
Minimum grossed-up value | $3,773 |
Capping of concessional FBT treatment for certain employers
The capping thresholds for the FBT exemption and FBT rebate concessions are shown in the following table:
Employer type | FBT concession for the years ending 31 March 2019, 2020,2021, 2022, and 2023 |
|---|---|
Public benevolent institution (other than public hospitals) and health promotion charities | FBT exemption is capped at $30,000. Salary packaged meal entertainment and entertainment facility leasing expense benefits capped at $5,000. |
Public hospitals, not-for-profit hospitals, and public ambulance services | FBT exemption is capped at $17,000. Salary packaged meal entertainment and entertainment facility leasing expense benefits capped at $5,000. |
Rebatable employers – certain registered charities, non-government, and not-for-profit organisations | FBT rebate of 47 capped at $30,000. Salary packaged meal entertainment and entertainment facility leasing expense benefits capped at $5,000. |
Record keeping exemption threshold
FBT year ending | Threshold |
|---|---|
31 March 2024 | $9,786 |
31 March 2023 | $9,181 |
31 March 2022 | $8,923 |
31 March 2021 | $8,853 |
31 March 2020 | $8,714 |
31 March 2019 | $8,552 |
note
For help with working out earlier rates and thresholds, go to https://www.ato.gov.au/Rates/Fringe-benefits-tax---historical-rates-and-thresholds/.
Car fringe benefits statutory formula rates
A flat statutory rate of 20% applies to all car fringe benefits you provide from 1 April 2014, regardless of the distance travelled. Work out your taxable value and FBT payable with the car calculator on the ATO website.
The exception is when there is a pre-existing commitment in place, before 7:30pm AEST on 10 May 2011, to provide a car. Where you have a pre-existing commitment in place, the statutory percentages are available in Chapter 7.4 of Fringe benefits tax – a guide for employers. Find out more about FBT for employers in Chapter 7.8 Statutory formula method.
Deemed depreciation rate – cars
The diminishing value depreciation rates are used for car fringe benefits valued under the operating cost method.
For cars purchased on or after 10 May 2006, the depreciation rate is 25%.
Find out more about FBT for employers in Chapter 7.9 – Operating cost method.
Motor vehicle (other than a car) – Cents per km rate
FBT year ending | 0–2500cc | Over 2500cc | Motorcycles |
|---|---|---|---|
tip
For help with working out earlier rates and thresholds, see https://www.ato.gov.au/Rates/Fringe-benefits-tax---historical-rates-and-thresholds/.
Car parking threshold
FBT year ending | Threshold |
|---|---|
31 March 2024 | $10.40 |
31 March 2023 | $9.72 |
31 March 2022 | $9.25 |
31 March 2021 | $9.15 |
31 March 2020 | $8.95 |
31 March 2019 | $8.83 |
tip
For help with working out earlier rates and thresholds, see https://www.ato.gov.au/Rates/Fringe-benefits-tax---historical-rates-and-thresholds/.
Statutory or benchmark interest rate
FBT year ending | Interest rate |
|---|---|
31 March 2024 | 7.77% |
31 March 2023 | 4.52% |
31 March 2022 | 4.52% |
31 March 2021 | 4.80% |
31 March 2020 | 5.37% |
tip
For help with working out earlier rates and thresholds, see https://www.ato.gov.au/Rates/Fringe-benefits-tax---historical-rates-and-thresholds/.
Housing indexation figures
Housing indexation by state and territory
FBT year ending | NSW | VIC | QLD | SA | WA | TAS | NT | ACT |
|---|---|---|---|---|---|---|---|---|
31 March 2024 | 1.009 | 1.006 | 1.046 | 1.039 | 1.087 | 1.055 | 1.100 | 1.053 |
31 March 2023 | 0.980 | 0.990 | 1.019 | 1.020 | 1.044 | 1.037 | 1.030 | 1.024 |
31 March 2022 | 0.975 | 1.000 | 0.998 | 1.011 | 0.991 | 1.043 | 0.947 | 1.018 |
31 March 2021 | 1.000 | 1.017 | 1.002 | 1.010 | 0.969 | 1.056 | 0.948 | 1.029 |
31 March 2020 | 1.020 | 1.019 | 0.997 | 1.008 | 0.937 | 1.043 | 0.948 | 1.028 |
tip
For help with working out earlier rates and thresholds, see https://www.ato.gov.au/Rates/Fringe-benefits-tax---historical-rates-and-thresholds/.
LAFHA
Reasonable Food and Drink Amounts for Employees Living Away from Home (LAFHA) – in Australia
The following table shows the weekly amounts considered to be reasonable food and drink amounts for a living-away-from-home allowance (LAFHA) paid to employees living away from home within Australia. These amounts are for the total of food or drink expenses and include any amounts that may have been allowed for home consumption.
1 adult | $316 | $289 | $283 | $276 | $269 |
2 adults | $474 | $434 | $425 | $414 | $404 |
3 adults | $632 | $579 | $567 | $552 | $539 |
1 adult and 1 child | $395 | $362 | $354 | $345 | $337 |
2 adults and 1 | $553 | $507 | $496 | $483 | $472 |
2 adults and 2 children | $632 | $580 | $567 | $552 | $540 |
2 adults and 3 children | $711 | $653 | $638 | $621 | $608 |
3 adults and 1 child | $711 | $652 | $638 | $621 | $607 |
3 adults and 2 children | $790 | $725 | $709 | $690 | $675 |
4 adults | $790 | $724 | $709 | $690 | $674 |
Each additional adult | $158 | $145 | $142 | $138 | $135 |
Each additional child | $79 | $73 | $71 | $69 | $68 |
note
A person is considered an adult for this purpose if they were 12 years or older before the beginning of the FBT year.
tip
For help with working out earlier rates and thresholds, see https://www.ato.gov.au/Rates/Fringe-benefits-tax---historical-rates-and-thresholds/.
Reasonable Food and Drink Amounts for Employees Living Away from Home (LAFHA) – Overseas
The following tables show the weekly amounts we consider to be reasonable food and drink amounts for a LAFHA paid to employees living away from home outside of Australia:
- Table 1 sets out the reasonable food and drink amounts for each cost group.
- Table 2 sets out the factors to apply if the employee is accompanied by other family members while overseas.
Table 1: Reasonable food and drink amounts for 1 adult (per week) by cost groups – overseas
1 | $137 | $137 | $137 | $137 | $137 |
2 | $201 | $201 | $201 | $201 | $201 |
3 | $273 | $273 | $273 | $273 | $273 |
4 | $346 | $346 | $346 | $346 | $328 |
5 | $437 | $437 | $437 | $437 | $437 |
6 | $537 | $537 | $537 | $537 | $537 |
Where the employee is accompanied by other family members while overseas, the reasonable food and drink amount per week for the family is worked out by multiplying the amount shown in Table 1 by the relevant factor in Table 2:
Table 2: Factors to apply for family groups – overseas
Family group | Factor |
2 adults | 1.5 |
3 adults | 2.0 |
1 adult and 1 child | 1.25 |
2 adults and 1 | 1.75 |
2 adults and 2 children | 2.0 |
2 adults and 3 children | 2.25 |
3 adults and 1 child | 2.25 |
3 adults and 2 children | 2.5 |
4 adults | 2.5 |
Each additional adult | 50% of the relevant single adult rate in Table 1: Reasonable food and drink amounts for one adult (per week) by cost groups – overseas |
Each additional child | 25% of the relevant single adult rate in Table 2: Factors to apply for family groups – overseas |
LAFHA Statutory Food Component
These are the normal home food costs.
- $42 per week per adult (12 years of age)
- $21 per week per child (less than 12 years of age)
Relocation and overseas posting exemptions and reductions
- Cost of connecting/re-connecting certain utilities
- Costs of selling/purchasing dwelling (with limitations)
- Cost of relocation consultant
- Leasing household goods while living away from home
- Loans for deposits associated with temporary accommodation
- Removal and storage of household effects
- Temporary accommodation costs
- Travel costs of family members (reduced taxable value)
- Travel costs to find new accommodation
LAFHA - 23AG concession
The section 23AG concession doesn’t apply to most employees. Employers are subject to FBT where employees are subject to Australian Tax. Speak to your advisor or refer to www.ato.gov.au/Business/Engaging-a-worker/In-detail/Foreign-employment-income-and-section-23AG---employers/
Other
ALAFHA - Hancox and FCT (2012) AATA 836
In this case, the AAT ruled in favour of the Commissioner and held that the taxpayer was paid a LAFHA and not a travel allowance by his employer.
The taxpayer (Mr Hancox) was an employee working on a FIFO basis in Port Hedland. His usual place of residence was Adelaide. He was flown by his employer out of Port Hedland to Perth every 4 weeks. He also claimed a substantial amount as a deduction for work-related travel expenses representing airfares paid by him between Perth and Adelaide.
Mr Hancox contended that his employer incorrectly classified the allowance paid to him as a LAFHA because the period he was required to live away from home was very close to the ’21 days’ mentioned in the tax ruling MT 2030. The Court held that this was not conclusive and ruled that the payment amounts didn’t constitute a travel allowance. As the amounts were characterised as LAFHA, the taxpayer was subsequently denied the deductions claimed for the travel expenses.
PCG 2016/10 simplified approach for calculating car fringe benefits on fleet cars
The Commissioner provided this Guideline as it has been recognised that compliance with the record-keeping requirements of the operating cost method can be difficult and time-consuming for employers with large fleets. The PCG sets out an optional, simplified approach to working out the business use percentage component of the operating cost method for employers with a fleet of 20 or more cars.
ATO ID 2013/8
Required to change usual place of residence: The Commissioner advised that if an employee changes their usual place of residence to be closer to where they perform the duties of their employment, even though it is not required by the employer, the employee will be regarded as being ‘required’ to change their usual place of residence to perform their duties of employment for the purposes of accessing the exemption for certain relocation expense and residual benefits under section 58B (and similarly sections 58AA, 58C, 58D, 61C, and 143A).
The Commissioner contrasted this view with the decision in the case Re Compass Group (Vic) Pty Ltd v FC of T [2008] AATA 845, in which the Court held that the employee was not ’required’ to change their usual place of residence because the employer didn’t require the employee relocate and because the commuting distance and time were not sufficiently great to impact on the employee’s ability to carry out their duties of employment effectively .
Based on the facts in the ATO ID, the employee was considered to be ‘required’ to change their usual place of residence even though not required by the employer, as otherwise the employee would be unable to perform the employment duty effectively. The role required the employee to be on call at certain times and on duty within 2 hours of the call and the distance between their former usual place of residence and their new place of employment was so great that it wouldn’t be possible to commute between the 2 places within the required time.
ATO ID 2012/96 to 98 - Car fringe benefits
Business journeys and transport of family members: In ATO ID 2012/96 and 97, the Commissioner advised that if an employee uses a vehicle provided by the employer, on an itinerant basis, to transport a family member to their destination, during the employee’s journey from home to their work locations, the whole journey would constitute private use under the FBT Act.
In contrast, in ATO ID 2012/98, the Commissioner held that the private use of the car in the circumstances previously-described would meet the definition of excepted private use where the transportation of the family member is minor, infrequent, and irregular in nature.
Work-related electronic device exemption
From 1 April 2016, the limit of 1 work-related electronic device is extended to let employers that are small business entities provide more than 1 work-related electronic device to their employees. The FBT exemption will apply to all work-related electronic devices if the employer was a small business entity for either or both of:
- the year of income starting most recently after the start of the FBT year; or
- the year of income ending most recently after the start of the FBT year.
Capping and reporting of entertainment benefits
Salary packaged entertainment: A separate grossed-up cap of $5,000 per employee for salary sacrificed meal entertainment and entertainment facility leasing expenses applies to not-for-profit employers from 1 April 2016.
These changes mean that employers will be liable to FBT where the grossed-up value of entertainment benefits exceeds $5,000 (which equates to $2,330 in benefits that are subject to GST). However, where the employee hasn’t fully utilised the general $30,000 or $17,000 cap with other benefits, entertainment benefits can exceed the $5,000 cap to the extent of the unutilised general cap.
Airline transport
: Airline transport fringe benefits are now treated as in-house property fringe benefits or in-house residual fringe benefits. Read more about the changes on the ATO web site.PCG 2018/3 - Exempt car benefits and exempt residual benefits
Compliance approach to determining private use of vehicles: The ATO set out their compliance approach for 'exempt car and exempt residual vehicle' benefits in PCG 2018/3.
The Practical Compliance Guide provides a simplified approach to determine whether private travel in exempt vehicles can qualify as minor, infrequent, and irregular.
PCG 2018/3 Guideline applies to the 2019 and later FBT years.
Generally, FBT would be payable where an employer makes an eligible vehicle that they hold available for the private use of its employees. However, where the private use of exempt vehicles is limited to work-related travel and other private use is minor, infrequent, and irregular, the benefit would be considered to be an exempt benefit. An exempt vehicle is a vehicle that is generally not designed to carry passengers (such as panel vans, utility vehicles (single cab and certain dual cab utes) and other commercial vehicles).
You can rely on this PCG if your employees use their vehicle to travel:
- between their home and their place of work, and any diversion adds no more than 2 kilometers to the ordinary length of that trip;
- no more than 1,000 kilometers in total for each FBT year for multiple journeys taken for a wholly private purpose; and
- no single return journey for a wholly private purpose exceeds 200 kilometers during the FBT year.
Where an employee's trip has a diversion greater than 2 km that trip must be added to the 1000 km total: In addition, the vehicle must not be salary packaged and the cost of the vehicle should not exceed the luxury car threshold.
Should you choose to rely on this PCG, you don’t need to keep logbooks supporting your employee's use of the exempt vehicles to demonstrate that the private use is minor, infrequent, and irregular. You will, however, need to ensure that the relevant employees’ private use of the cars continue to meet the requirements for each year you provide the vehicle and want to rely on the Guideline.
Non-lodgment form
: If you are not lodging an FBT return this year, refer to the non-lodgment form. Motor vehicle - Statutory fraction method
Motor vehicle | Annualised kilometres | Statutory fraction |
|---|---|---|
Owned/leased after 10-May-2011 | Any value (new rules) | 0.20 |
Existing vehicles under "old rules" – Owned or leased on or before 10-May-2011. [s 9(2)(c)] | Less than 15,000 15,000 to 24,999 25,000 to 40,000 More than 40,000 | 0.26 0.20 0.11 0.07 |
Motor vehicle log book requirements - operating cost method
[s 136 “log book records”]
- Maintained for a minimum continuous 12-week period
- Date journey began and ended
- Odometer readings at beginning and end of journey
- Number of kilometres travelled during the journey
- Purpose of journey
- Business use percentage of log-book for the period
Car parking - statutory days
[s 39A(1)]
Car parking benefits arise when:
- A car is parked for longer than 4 hours between 7am and 7pm
- A commercial car parking station is within 1 km, and
- The operator's lowest daily fee charged exceeds the car parking threshold.
Methods of valuing car parking:
- Commercial parking station method – lowest commercial or public rate within 1 km radius
- Market value basis – arm’s length amount
- Average cost method – first and last day average of lowest fee within 1 km radius