Do you get reportable fringe benefits?
Don’t leave it to the last minute! You might need to update your income estimate.
The way we assess reportable fringe benefits as part of your adjusted taxable income is changing from 1 January 2017.
We currently use 51% of the total value of your reportable fringe benefits in calculating your payment rates. These are a part of your adjusted taxable income.
From 1 January 2017, we’ll use 100% of the total value.
If you get Family Tax Benefit (FTB) or Child Care Benefit, tell us the amount of reportable fringe benefits you receive. You can do this by updating your family income estimate.
The change may not affect you if you work for one of these not for profit organisations exempt from reportable fringe benefits tax:
- public benevolent institutions
- health promotion charities
- some hospitals and public ambulance services
Ask your employer if you’re not sure if they’re exempt or if you receive a reportable fringe benefit.
We look at your reportable fringe benefits for:
- Family Tax Benefit
- Child Care Benefit
- Stillborn Baby Payment
- Parental Leave Pay
- Dad and Partner Pay
- Assistance for Isolated Children
- Youth Allowance, and
- ABSTUDY Living Allowance
If you or your child receive any of these payments, we’ll let you know how this change affects you and what you need to do.
Updating with Express Plus Centrelink mobile app
Kate gets FTB for her child. Her employer also provides a car to use outside work. She checked with her payroll area and confirmed this is a reportable fringe benefit. She also checked that her employer isn’t exempt.
From 1 January 2017, we’ll use 100% of the value of Kate’s car when we work out her adjusted taxable income.
Kate’s rate of FTB will reduce as a result.
Sam gets FTB for his 2 children. His employer also pays for some of his child care costs. He checked with his boss and confirmed this is a reportable fringe benefit.
When we work out Sam’s payment rate, we include how much child care his employer pays for in assessing his income.
Sam thinks his employer might be exempt from this change. He checks with his payroll area and finds out his employer is a health promotion charity. This means we still assess just 51% of the child care his employer pays.
Sam now only has to update his family income estimate so that we have up to date information about his income.
Sam’s rate of FTB won’t change.
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