Fringe benefits
All taxable fringe benefits under the Fringe Benefits Tax Assessment Act 1986 are liable for payroll tax. If the benefit is exempt or has a nil value, it’s not liable for payroll tax. For more information on values and exempt benefits, view the Fringe Benefits Tax Assessment Act 1986.
Gross-up rates
The table below provides the relevant gross-up rate for the following financial years:
Period | Gross up rate |
---|
01/07/2023 to 30/06/2024 | 1.8868 |
01/07/2022 to 30/06/2023 | 1.8868 |
01/07/2021 to 30/06/2022 | 1.8868 |
01/07/2020 to 30/06/2021 | 1.8868 |
01/07/2019 to 30/06/2020 | 1.8868 |
Calculating your liable fringe benefits
The value used for payroll tax is the NSW portion of the total of type 1 and type 2 aggregate amounts, multiplied by the type 2 gross-up rate.
The fringe benefit tax (FBT) year is from April to March, but for payroll tax purposes you can assume the rates apply from July to June.
Monthly calculation
You should declare the actual value of fringe benefits for each month.
If you have 15 months or more of fringe benefit payments, you can use the monthly estimate method. Otherwise, you must provide actual fringe benefit amounts.
Monthly estimate method
For July to May, you must use 1/12 of the taxable value from your FBT return for the year ending 31 March, immediately before the current financial year.
Annual calculation
The amount declared is the taxable value from your FBT return for the year ending 31 March, immediately before the annual reconciliation. For your annual calculation, add the NSW portion of the total type 1 and type 2 aggregate amounts, multiplied by the type 2 gross-up rate for the specific year.
Monthly estimate method
A 2023 FBT return has:
- type 1 aggregate amount $80,000
- type 2 aggregate amount $150,000
The taxable value is ($80,000 + $150,000) × 1.8868 = $433,964. The monthly returns for 2023-24 can be estimated as $433,964 / 12 = $36,164
FBT annual calculation
The 2023 FBT return has:
- type 1 aggregate amount $90,000
- type 2 aggregate amount $160,000
The taxable value that should be disclosed in the annual reconciliation for 2023 is ($90,000 + $160,000) × 1.8868 = $471,700.
Interstate fringe benefits
If you pay fringe benefits in NSW and interstate and are unable to accurately calculate your NSW fringe benefits value, you can use a pro rata figure for your NSW FBT value, based on the ratio of NSW wages to total Australian wages.
Monthly estimate method
The formula is total NSW wages (excluding fringe benefits) divided by total Australian wages (excluding fringe benefits) multiplied by the taxable value from your FBT return for the year ending 31 March immediately before the current financial year divided by 12.
Annual calculation
The formula is total NSW wages (excluding fringe benefits) divided by total Australian wages (excluding fringe benefits) multiplied by the taxable value from your FBT return for the year ending 31 March immediately before the annual reconciliation.
For more information, read Revenue Ruling PTA 003 v3, and our common errors and case studies pages.
Payroll tax assist
Use payroll tax assist to help you meet your payroll tax obligations. It'll show you what wages are taxable.