Fringe Benefit Tax (FBT) issues

New FBT thresholds and rates for 2021–22

The ATO has released new thresholds and rates for the 2021¬–22 fringe benefits tax (FBT) year (the year commencing on 1 April this year):

  • statutory or benchmark interest rate (e.g. for loan fringe benefits) – 4.52%; and
  • record keeping exemption (also relevant for eligibility to use the base rate method to calculate FBT) – $8,923.

The cents-per-kilometre rates (for where a motor vehicle other than a car is used privately) are:

  • vehicles with an engine capacity of up to 2,500cc – 56 cents/km;
  • vehicles with an engine capacity of over 2,500cc – 67 cents/km; and
  • motorcycles – 17 cents/km.

The car parking threshold for 2021–22 will be announced once the relevant CPI figure is available.

Living-away-from-home allowances

The ATO has issued the weekly amounts of food and drink expenses incurred by employees receiving a living-away-from-home allowance (LAFHA) fringe benefit that it treats as being reasonable for the 2021–22 FBT year. These amounts may be relevant in working out the FBT payable on the LAFHA benefits.

The reasonable weekly amounts for employees in Australia are set out in the table below.
See Taxation Determination TD 2021/3 for the 2021–22 reasonable weekly amounts for employees outside Australia.

Amounts of reasonable food and drink – within Australia

Per week $
1 adult*283
2 adults425
3 adults567
1 adult and 1 child354
2 adults and 1 child496
2 adults and 2 children567
2 adults and 3 children638
3 adults and 1 child638
3 adults and 2 children709
4 adults**709
*An adult is a person who attained the age of 12 years before 1 April 2021.
** For larger family groupings, add $142 for each additional adult and $71 for each additional child.

Tip! If your business provides LAFHA fringe benefits to employees, talk to your tax adviser if uncertain whether the food and drink expenses need to be substantiated, or if uncertain how to work out the amount of FBT that is payable.

For more on current FBT rates, please see this link to the ATO website – ato.gov.au

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