In case of the accommodation, the taxable income is the net amount of the benefits provided. This fringe benefit falls under the providing private residences to the employees and is valid taxable fringe benefit. The net amount of benefit provided to John is market value rent of the apartment minus the amount paid by John. However, whether, the apartment in Sydney is subject to tax exemption is examined further in this paper.
There is arising of the housing fringe benefit, when the accommodation is provided to an employee at a reduced rent or rent free (Woodbury 1983). The accommodation provided must be their usual place of residing.
The types of accommodations that falls under the consideration of FBT include:
A unit of home or a flat or a house
Accommodation in a living quarter, bunkhouse, guesthouse, motel or a hotel
A mobile home or a caravan
Accommodation on a floating structure or a ship
The accommodation provided to John falls under a flat or a house and is taxable under FBT.
However, exemption from FBT is provided to the accommodation of the employees that are in the remote areas.
The location can be called remote if the location is adjacent to or does not fall under an eligible urban area. Since, Sydney falls under an eligible urban area, there can be no exemption of FBT for the accommodation provided to John. Therefore, the employer of John has to provide FBT on the net fringe benefit John receives through accommodation.
学费的FBT = 15,000 x 0.47 = 7,050
= (800 x 365/7) – (100 x 365/7) = 41,714 – 5,214 = 36,500(四舍五入)
住宿的FBT = 36,500 x 0.47 = 17,155
这意味着雇主为John支付的FBT总额为$(7,050 + 17,155)= $ 24,205。
The taxable fringe benefit is calculated by multiplying taxable fringe benefit with the tax rate. The rate of FBT for the current year is 47 percent. Therefore, the FBT for John is as follows.
The taxable fringe benefit for the school for the FBT year = $15,000
The tax rate = 47 percent
The FBT for the school fees = 15,000 x 0.47 = 7,050
Therefore, the employer of John has to pay FBT for paying his child’s school fees an amount of $7,050.
The FBT on the taxable fringe benefit for the accommodation provided to John is as follows.
The taxable fringe benefits for the accommodation for the FBT year = (market value rent for the apartment) – (rent paid by John)
= (800 x 365/7) – (100 x 365/7) = 41,714 – 5,214 = 36, 500 (decimals rounded off)
The tax rate = 47 percent
The FBT for the accommodation = 36, 500 x 0.47 = 17, 155
Therefore, the employer of John has to pay FBT for his accommodation an amount of $17,155.
That means the total FBT paid by the employer for John is $(7,050 + 17,155) = $24, 205.
The employer of John must be registering the FBT after the determination of the amount that has to be paid as FBT as the fringe benefit.
The FBT return must be lodged as there is FBT liability with regards John during the current FBT year (1st April to 31st March). The FBT return must be lodged and paid the liability amount that ending 31st March by 21st May. However, if the preparation of the FBT return is done by the tax agent, there can be application of a different arrangement regarding the lodgment. The FBT can be paid by quarterly installments or annually with the employer’s business activity statement (BAS). The payment must be made before or on the due date, within which if the payment is not made, penalties or the interest can be liable.