Payroll Tax Act 2008
16Employer election regarding taxable value of fringe benefits
Start here
Get a plain-English read of 16
Turn the raw legal text into a practical explanation grounded in Payroll Tax Act 2008.
16 Employer election regarding taxable value of fringe benefits
(1) An employer who has paid or is liable to pay fringe benefits tax imposed by the FBTA Act in respect of a period of not less than 15 months before 30 June in any year may elect to include as the value of the fringe benefits paid or payable by the employer during the month concerned –
(a) in a return lodged in relation to each of the first 11 months occurring after 30 June in that year, 1/12 of the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10 , comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding the commencement of the current financial year; and
(b) in the return lodged in relation to the 12th month, the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10 , comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding that month, less the total of the amounts of fringe benefits included in the returns for each of the preceding 11 months.
(2) The amount determined in accordance with this subsection is to be determined in accordance with the formula –
where –
AFBA is the aggregate fringe benefits amount within the meaning of section 136 of the FBTA Act;
FBT rate is the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises.
(3) An election under subsection (1) takes effect when it is notified to the Commissioner in the form approved by the Commissioner.
(4) After an employer has made an election under subsection (1) , the employer must lodge returns containing amounts calculated in accordance with the election unless the Commissioner approves, by notice in writing given to the employer, the termination of the election and allows the employer to include the value referred to in section 15(2)(a) .
