Fringe Benefits Tax – 2019 & 2020

FBT Rate

FBT is imposed on the grossed-up taxable value of the benefits provided. The FBT rate is as follows:

FBT Year Ended 31 March

Rate

2020

47%

2019

47%

 

Gross-up Rates

FBT Year Ended 31 March

Gross-up Rate

 

Type 1

Type 2

2020

2.0802

1.8868

2019

2.0802

1.8868

 

Car Fringe Benefits – Statutory Formula Method – Statutory Fraction

 

 

Annualised kilometres

Statutory Fraction

Agreements in existence before 7.30pm 10 May 2011

Agreements entered into from 7.30pm 10 May 2011

0 – 14,999

0.26

0.20

15,000 – 24,999

0.20

0.20

25,000 – 40,000

0.11

0.20

40,001+

0.07

0.20

 

Rates for Vehicles other than Cars1

 

Engine Capacity

Cents per Km 2020 FBT Year

Cents per Km 2019 FBT Year

0 – 2,500cc

$0.55

$0.54

2,501cc+

$0.66

$0.65

Motorcycles

$0.16

$0.16

1     These are residual fringe benefits.

 

Benchmark Interest Rate for Loan Fringe Benefits

FBT Year Ended 31 March

Rate

2020

5.37%

2019

5.20%

 

Car Parking Threshold

FBT Year Ended 31 March

Threshold

2020

$8.95

2019

$8.83


 

Other Key Rates and Thresholds

HELP Repayment Thresholds – 2018/19

The Higher Education Loan Programme ('HELP') offers Commonwealth loans to eligible students to assist them with paying their higher education fees and to study overseas. A HELP debt is repaid through the taxation system, based on a taxpayer's HELP 'repayment income'. HELP repayment income is the sum of the taxpayer's:

  • taxable income;
  • total net investment loss;
  • reportable fringe benefits;
  • exempt foreign employment income; and
  • reportable superannuation contributions.

HELP Repayment Income Thresholds and Rates1,2

Rate of Repayment

HELP Repayment Income

Nil

$0 – $51,956

2%

$51,957 - $57,729

4%

$57,730 – $64,306

4.5%

$64,307 – $70,881

5%

$70,882 – $74,607

5.5%

$74,608 – $80,197

6%

$80,198 – $86,855

6.5%

$86,856 – $91,425

7%

$91,426 – $100,613

7.5%

$100,614 – $107,213

8%

$107,214+

  • From 1 July 2017, taxpayers living overseas and earning income that exceeds the minimum repayment threshold will be required to make compulsory repayments towards their debt.

  • The relevant repayment rates and thresholds outlined above have been amended to include the introduction of a lower minimum repayment threshold and a maximum repayment rate of 10%. These changes will commence in the 2019/20 income year.

 

Genuine Redundancy Payments – Tax-free Amounts


The tax-free amount of a genuine redundancy payment in 2018/19 is $10,399 plus $5,200 for each completed year of service.

Per Kilometre Claims for Car Deductions

The 2018/19 cents per kilometre (km) rate for car deductions (up to a maximum of 5,000 business kms per car) is 68 cents per kilometre.


Car Depreciation Cost Limit1

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

Income Year

Cost Limit

2018/19

$57,581

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



CGT Improvement Thresholds

Certain improvements to pre-CGT assets will be deemed to be separate post-CGT assets where the cost base of the improvement (and '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.

 

Income Year

Improvement Threshold

2018/19

$150,386

 


Consumer Price Index Rates

Indexation based on movements in the Consumer Price Index (‘CPI’) is relevant to some provisions in the tax and superannuation law including, amongst other things, calculating the taxable value of a fringe benefit relating to the repurchase of remote area residential property.1

The latest CPI rates are set out in the table below:

 

Income Year

Quarter Ending 30 September

Quarter Ending 31 December

Quarter Ending 31 March

Quarter Ending 30 June

2018/19

113.5

114.1

114.1

Not Available


1 Note, the Australian Bureau of Statistics changed the index reference base in September 2012  from 1999/2000 to 2011/12. As a result all CPI rates have been reset and the previous rates no longer apply. The rates reported in the above table are the reset rates.

 

Valuation of Natural Increase – Prescribed Cost Rates – 2018/19

Description

Rate per Head

Description

Rate per Head

Cattle

$20.00

Horses1

$20.00

Deer

$20.00

Pigs

$12.00

Emus

$8.00

Poultry

$0.35

Goats

$4.00

Sheep

$4.00

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 – 2018/191

 

 

Type of Business

2018/19

Adult/Child2

Over 16 years

Child2

4-16 years

Bakery

$1,350

$675

Butcher

$830

$415

Restaurant/cafe (licensed)

$4,640

$1,750

Restaurant/cafe (unlicensed)

$3,500

$1,750

Caterer

$3,790

$1,895

Delicatessen

$3,500

$1,750

Fruiterer/greengrocer

$800

$400

Take-away food shop

$3,430

$1,715

Mixed business (e.g., milk bar, general store and convenience store)

$4,260

$2,130

  • Refer to TD 2019/2
  • Amounts are GST-exclusive.
  •  

Income-producing Building Write-off Rates

 

 

Use of Building

 

Capital Works Commenced

 

Write-off Rate

Non-residential buildings

Industrial

27/2/1992+1

4%

Non-industrial buildings

20/7/1982 – 21/8/1984

2.5%

22/8/1984 15/9/1987

4.0%

16/9/1987+

2.5%

Research & Development buildings

21/11/1987+

2.5%

Residential buildings

Short-term traveller accommodation

22/8/1979 – 21/8/1984

2.5%

22/8/1984 15/9/1987

4.0%

16/9/1987 26/2/1992

2.5%

27/2/1992+

4.0%

Residential income-producing buildings

18/7/1985 15/9/1987

4.0%

16/9/1987+

2.5%

Structural improvements

27/2/1992+

2.5%

Environment protection earthworks

18/8/1992+

2.5%

1     For an industrial building constructed before 27 February 1992, the rates for non-industrial non-residential buildings are applied.



 

Prime Cost and Diminishing Value Rates (150% and 200%)

For most items of plant and equipment acquired* on or after 10 May 2006, the diminishing value method ('DVM') rate was increased from 150% to 200%. This means that the DVM depreciation rate is twice the prime cost ('PC') rate of depreciation for such assets.

Note(*): For these purposes, a taxpayer acquires an asset when they commence to hold it (e.g., on settlement of a contract).   Therefore, a taxpayer may acquire an asset on or after   10 May 2006 under a contract entered into before 10 May 2006, and still use the 200% DVM rate.

The 200% DVM depreciation rates apply to new and second-hand assets, including those  with statutory caps (e.g., certain trucks). The rates also apply to both business assets and investment assets (e.g., assets used in a rental property).

However, the 200% DVM depreciation rates do not apply to taxpayers using the SBE rules and assets classes for which there are special arrangements (e.g., new horticultural plants).

Furthermore, the 200% DVM depreciation rates cannot be used for certain intangible depreciating assets. That is, depreciation deductions for these assets must be calculated using the PC rates. The types of assets excluded from the 200% DVM depreciation rates are:

  • in-house software;
  • intellectual property assets (except copyrights in a film);
  • spectrum licences;
  • datacasting transmitter licences; and
  • telecommunications site access rights.

The following table sets out the effective PC and DVM rates of depreciation that apply to an asset based on its effective life.

For example, a taxpayer may choose to use the Commissioner’s effective life of 10 years     for a particular asset. In that case, the PC rate of depreciation would be 10% (i.e., 100% divided by 10 (years)). The equivalent DVM rate of depreciation would be either 15% (at 150% DVM rates) or 20% (at 200% DVM rates) depending on whether the depreciating asset was acquired before 10 May 2006 or on or after 10 May 2006.

 

Effective Life (years)

Prime cost rate

 

%

Diminishing value rate (150%)

%

Diminishing value rate (200%)

%

0.5

*

*

*

1

100

*

*

1.5

66.67

100

*

2

50

75

100

3

33.33

50

66.67

3.33

30

45

60

3.5

28.57

42.86

57.14

4

25

37.5

50

4.5

22.22

33.33

44.44

5

20

30

40

5.5

18.18

27.27

36.36

6

16.67

25

33.33

6.67

15

22.5

30

7

14.29

21.43

28.57

7.5

13.33

20

26.67

8

12.5

18.75

25

8.33

12

18

24

9

11.11

16.67

22.22

10

10

15

20

11

9.09

13.64

18.18

12

8.33

12.5

16.67

12.5

8

12

16

13

7.69

11.54

15.38

13.33

7.5

11.25

15

14

7.14

10.71

14.28

15

6.67

10

13.33

16

6.25

9.38

12.5

16.67

6

9

12

17

5.88

8.82

11.76

17.5

5.71

8.57

11.43

18

5.56

8.33

11.11

20

5

7.5

10

22

4.55

6.82

9.09

23

4.35

6.52

8.70

25

4

6

8

30

3.33

5

6.67

33

3.03

4.55

6.06

33.33

3

4.5

6

35

2.86

4.29

5.71

40

2.5

3.75

5

45

2.22

3.33

4.44

47.5

2.11

3.16

4.21

50

2

3

4

80

1.25

1.88

2.5

100

1

1.5

2

Note: Where assets are acquired during the year, depreciation must be calculated on a per day basis. Therefore a 100% or higher depreciation rate does not equate to an immediate write-off unless the asset is held for (up to) a full year.

* In the first year, the depreciation claim cannot be greater than the original cost and, over the life of the asset, total depreciation claimed cannot exceed the asset's original cost.

Last modified: 11 Dec 2019

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