FBT & Other Key Rates & Thresholds

This question isn't on the commonly asked questions list because most of our clients forget about it, and many don't know what it is or if it applies to them. Here's a breakdown of what you need to know in simple terms. 

Key takeaway: if you're a client, keep up to date with your emails! You'll be receiving a form to complete, and we'll take the rest from there.

FBT Rate and Gross-up Rates

Car Fringe Benefits – Statutory Formula Method – Statutory Fraction

Motor Vehicle (other than a Car) – Residual Benefits – Cents per Kilometre Rates

Benchmark Interest Rate for Loan Fringe Benefits

Car Parking Threshold

Record-Keeping Exemption Threshold

Other Key Rates and Thresholds – 2021/22 (HELP Repayment Rates and Thresholds)

Compulsory repayments of the Higher Education Loan Programme ('HELP') and other study and training loans are based on a taxpayer's 'repayment income'.

Repayment income is calculated as taxable income plus any total net investment loss, total reportable fringe benefits, exempt foreign employment income and reportable superannuation contributions.

The repayment income thresholds and rates for the 2022 income year are as follows:

Genuine Redundancy Payments – Tax-free Amounts

For the 2022 income year, the tax-free amount of a genuine redundancy payment is calculated as follows:

$11,341 + $5,672 for each completed year of service

Cents Per Kilometre Rate for Car Deductions

Under the cents per kilometre method, a single rate is used for claiming car deductions – up to a maximum of 5,000 business kilometres per car (if applicable).

Car Depreciation Cost Limit

The depreciation cost limit applies to the income year in which a car is acquired or first held.

1 A hearse is not subject to the depreciation car limit.

Capital Gains Tax ('CGT') Improvement Threshold

Certain improvements to pre-CGT assets are deemed to be separate (post-CGT) assets for CGT purposes if the cost base of the improvement and any related improvements exceeds both:

• the improvement threshold for the income year in which a CGT event happens in relation to the original asset (e.g., the sale of the asset); and
• 5% of the capital proceeds from the event.
  
  

Consumer Price Index Rates

Trading Stock: Valuation of Natural Increase – Prescribed Cost Rates

1   A horse's livestock cost will be the greater of the above or, the insemination service fee.

Goods Taken from Stock for Private Use

1    Amounts are GST-exclusive. Refer to TD 2021/8 for further details.

If you have questions about FBT, employment taxes, or need help with your FBT obligations, please call us or email us!