Reconcile the FBT form
Before generating your FBT Form or e-file, you should ensure all data is complete.
A small variance between the reports or workpapers and the FBT form is not necessarily a problem. When reconciling values between reports, workpapers, and the FBT form, values may differ by up to $0.99 (99 cents).This is often a consequence of the tax office rules, which require truncated values (drop the cents and do not round) on various parts of the return. The reports or workpapers may show the cents when it is not possible to include them in the calculations or in the display on certain parts of the form. A few dollars difference is most likely because of the various labels, such as 14 and 23, truncating the cents.
Values disclosed on the FBT form do not show cents in several places. This is per Schedule 1 of the Taxation Administration Act 1953 (Cth), which specifically states that where an approved form requires a disclosure in whole dollars, you truncate rather than round. See Taxation Administration Act 1953. Schedule 1 – Collection and recovery of income tax and other liabilities, Chapter 5 – Administration, Subdivision 388-B – General Provisions, Section 388-85 Truncating Amounts.
Sample Australia Pty Ltd calculates that the total taxable value for expense payments is $8,496.73. Because the approved form requires amounts to be truncated, the amount would be reported at label 23 of the FBT form as $8,496.