Fringe Benefits

Australian Taxation Office (ATO) Fringe Benefit Tax

Employers have to complete and lodge a fringe benefits tax (FBT) return with the ATO if they have FBT liability for the FBT year. The FBT year is from 1 April to 31 March.

On the FBT return, employers are asked to calculate their fringe benefits under questions 13 and 14. Most employers have to complete questions 13A and/or 13B, and 14. Employers that are public benevolent institutions (PBIs), health promotion charities, public hospitals, non-profit hospitals or public ambulance services need to complete only item 13C (Aggregate non-exempt amount) and 14, and not items 13A and 13B (type 1 aggregate amount and type 2 aggregate amount respectively).

WorkSafe Taxable Value of Fringe Benefit

Fringe benefits are included in rateable remuneration for WorkSafe purposes. Employers must declare the benefits on their Certified Statement of Rateable Remuneration (CRR) at the end of the financial year. This form can be part of the Declaration of Rateable Remuneration (DRR) or can be a form by itself (for re-issues, new registrations and ceased employers).

Although WorkSafe rateable remuneration is declared on a financial year basis, the value of fringe benefits to be included is the value calculated for the FBT year ended 31 March.

To complete their CRR, employers should refer to their FBT return for the relevant year. For most employers, the amount to be declared at item C. Taxable value of fringe benefits on the CRR is the sum of the amounts in the left boxes shown at 13A and 13B on the FBT return (i.e. before multiplying the gross up rate).

WorkSafe uses the ATO's definition of what items are taxable fringe benefits. If you are unclear whether an item is a taxable fringe benefit, please go to www.ato.gov.au contact the ATO or your tax advisor for more information.

Victorian Component Only

WorkSafe only requires the declaration of the taxable value of FBT that applies to Victorian workers. If the FBT Return submitted to the ATO includes FBT for workers outside of Victoria then only the amount relating to Victoria should be included in the CRR form.

If the Victorian component of the taxable value of FBT is unclear then an amount comparable to the proportion of wages paid in Victoria from the total Australian wages should be used. 

Frequently Asked Questions

Do I use the grossed up FBT amount?

No. Most employers should use the sum of Type 1 and Type 2 aggregate amounts, prior to applying the gross up rate.

Which fringe benefits amount should I use for "C. Taxable value of fringe benefits" on the Certified Statement of Rateable Remuneration?

Most employers should use the sum of the pre-grossed up amounts for 13A and 13B, i.e. the sum of the amounts in the boxes shaded (light grey), as shown in Figure 1 below, less any amounts that do not apply to Victorian Workers.

Note: Hospitals, Public Benevolent Institutions, Health Promotion Charities and other bodies that have an ATO-provided exemption from Fringe Benefits are not required to declare any exempt fringe benefit amount at item C. Taxable Value of Fringe Benefits in their Declaration of Rateable Remuneration.

PBI’s, health promotion charities, public hospitals, non-profit hospitals or public ambulance services should contact their WorkSafe Agent for advice.

Figure 1: Excerpts from ATO FBT return and WorkSafe DRR (Note: The boxes shaded here are for illustrative purposes and are not shaded in the actual ATO return)

The ATO's FBT year is from 1 April to 31 March. What period should I use for the WorkSafe fringe benefits?

Use the same FBT period as the ATO, i.e. 1 April to 31 March. Section 8(2A) of the Accident Compensation (WorkCover Insurance) Act 1993 requires that the fringe benefit to be included in rateable remuneration for a financial year is to be the fringe benefit calculated for the period 1 April to 31 March ending in that financial year.

What fringe benefits are remuneration for WorkSafe?

If you are unclear whether a fringe benefit is taxable, you can seek assistance from the ATO or a professional tax practitioner. The ATO enquiry line is 1328 66 and their website is www.ato.gov.au

Section 5C of the Accident Compensation Act 1985 provides that the value of remuneration comprising a fringe benefit is the value that would be the taxable value of the benefit as a fringe benefit for the purposes of the Fringe Benefits Tax Assessment Act 1986 of the Commonwealth.

Section 5(1) of the Accident Compensation Act 1985 defines that for WorkSafe purposes, fringe benefit has the same meaning as in the Fringe Benefits Tax Assessment Act 1986 of the Commonwealth but does not include anything that is prescribed by the regulations not to be a fringe benefit for the purposes of this definition.

Currently, there are no additional fringe benefits prescribed under the regulations for WorkSafe that are excluded fringe benefits.

What is fringe benefit tax? What is exempt from fringe benefit tax? What amounts of any benefits paid are exempt? How do I calculate fringe benefit tax?

WorkCover’s definition of fringe benefit is the same as that of the ATO. If you are unclear whether a fringe benefit is taxable, you can seek assistance from the ATO or a professional tax practitioner. The ATO enquiry line is 1328 66 and their website is www.ato.gov.au