FBT What’s coming in 2015
FBT Rate Changes
The following table outlines the FBT rate changes effective from 1 April 2015
(and further changes effective from 1 April 2016 and 2017).
FBT year
2014/15
2015/16
2016/17
2017/18
FBT rate
47%
49%
49%
47%
Type 1 gross-up rate
2.0802
2.1463
2.1463
2.0802
Type 2 gross-up rate
1.8868
1.9608
1.9608
1.8868
FBT rebate
48%
49%
49%
47%
PBI/ rebateable cap (grossed-up)
$30,000
$31,177
$31,177
$30,000
PBI/ rebateable effective Type 2 cap
$15,900
$15,900
$15,900
$15,900
Hospitals etc. cap (grossed-up)
$17,000
$17,667
$17,667
$17,000
Hospitals etc. effective Type 2 cap
$9,010
$9,010
$9,010
$9,010
FBT Rate Increase (from 1 April 2015)
The FBT rate will increase by 2% to 49%. This will bring the FBT rate in line with the top marginal tax rate (plus
Medicare levy) that will be implemented by the Federal Government as a ‘Budget Repair Levy” (effective
1 July 2015). This levy will be in place for 2 financial years.
FBT Rebate Increase (from 1 April 2015)
The Federal Government also announced that for simplicity, the FBT rebate (which was previously set at
48% (and unrelated to the actual FBT rate) should move in line with the FBT rate. This means that the FBT
rebate will also increase to 49% for the next 2 years (effective 1 April 2015).
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FBT What’s coming in 2015
Gross-up Rate Changes
In line with the increased FBT rate to 49% from 1 April 2015 the Type 1 (GST benefit) and Type 2 (non GST
benefit) gross-up rates will also be amended:
Gross-Up Rate Changes
FBT Year
Type 1 Rate
Type 2 Rate
2014-2015
2.0802
1.8868
2015-2016 and 2016-2017
2.1463
1.9608
Grossed-Up Threshold
In line with the increased FBT rate to 49% from 1 April 2015 the Type 1 (GST benefit) and Type 2 (non GST
benefit) gross-up rates will also be amended:
This increase will have no impact on the net (effective) cap amount of $15,900 and $9010.
Other Calculations
FBT calculations will now need to be calculated using the new gross-up rates and FBT rate.
Calculation of FBT on a motor vehicle
Base Value: $40,000
Stat rate: 20%
2014-2015
2015-2016
Taxable value:
$40,000 x 20% = $8,000
$40,000 x 20% = $8,000
FBT = TV x Gross-up rate x FBT rate
$8,000 x 2.0802 x 47%
$8,000 x 2.1463 x 49%
FBT
$7,821.55
$8,413.50
Calculation of FBT for a rebateable employer packaging living expenses
Amount packaged: $15,900
2014-2015
2015-2016
Taxable value:
$15,900
$15,900
FBT = TV x Gross-up rate x FBT rate x (1- 48%)
$15,900 x 1.8868 x 47% x (1-48%)
$15,900 x 1.9608 x 49% x (1-49%)
FBT
$7,332.03
$7,791.06
Contact us using the following details:
CALL US ON:
1300 132 532
EMAIL US AT:
FIND OUT MORE AT:
info@paywise.com.au www.paywise.com.au