Editor: The ATO has released Taxation Determinations setting out the following rates for the FBT year commencing on 1 April 2018.
FBT: Benchmark Interest Rate
The benchmark interest rate for the 2018/19 FBT year is 5.20% p.a., which is used to calculate the taxable value of:
** a loan fringe benefit; and
** a car fringe benefit where an employer chooses to value the benefit using the operating cost method.
Example
On 1 April 2018, an employer lends an employee $50,000 for five years at an interest rate of 5% p.a., with interest being charged and paid 6 monthly, and no principal repaid until the end of the loan.
The actual interest payable by the employee for the current year is $2,500 ($50,000 × 5%). The notional interest, with a 5.20% benchmark rate, is $2,600.
Therefore, the taxable value of the loan fringe benefit is $100 (i.e., $2,600 – $2,500).
FBT: Cents per Kilometre Basis
The rates to be applied where the cents per kilometre basis is used for the 2018/19 FBT year in respect of the private use of a vehicle (other than a car) are:
| Engine Capacity | Rate per Kilometre |
| 0 – 2,500cc | 54 cents |
| Over 2,500cc | 65 cents |
| Motorcycles | 16 cents |
FBT: Recordkeeping Exemption Threshold
The small business record keeping exemption threshold for the 2018/19 FBT year is $8,552.
Editor: The ATO has also released Taxation Determinations setting out the indexation factors to value non-remote housing, and the amounts the ATO considers reasonable for food and drink expenses incurred by employees receiving a living-away-from-home allowance (LAFHA) fringe benefit, for the FBT year commencing on 1 April 2018.
* * * Disclaimer: The information is sourced from NTAA. * * *
Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their circumstances.
