Circulars
>> 2000

Fringe Benefits Tax - Reportable Benefits - 30 March 2000

• Introduction
• Recording the value of Fringe Benefits on Group Certificates
• In Summary

Introduction

1. This circular:

(a) addresses concerns raised over the recent mail out by the Australian Tax Office entitled Information for Employers and Facts for Employees: Changes to Fringe Benefits Tax reporting arrangements (a copy of this mail out is attached), and

(b) restates advice provided in my circulars dated 3 May 1999 and 8 July 1999 outlining these changes.

2. In this circular, the terms "minister", "assistant minister" and "lay minister" have the meaning set out in the Circular on Stipends, Allowances and Benefits dated 22 September 1999.

Recording the value of Fringe Benefits on Group Certificates

3. The fringe benefits tax reporting arrangements require that the value of fringe benefits provided to an employee will be recorded on the employee's group certificate. The reason for this is to enable the Government to better ascertain entitlements to certain government benefits. The value of fringe benefits will be taken into account in determining entitlements which are means tested including entitlements to new family assistance measures due to come into effect from 1 July 2000.

4. The requirement to record the value of fringe benefits provided to an employee commences with the group certificate prepared for the year ending 30 June 2000. The value of the benefits to be recorded on this group certificate will be the value of those benefits provided during the fringe benefits tax year commencing 1 April 1999 and ending 31 March 2000.

5. Similarly, the value of benefits recorded on the group certificate for the year ending 30 June 2001 will be the value of benefits provided during the fringe benefits tax year commencing 1 April 2000 and ending 31 March 2001.

6. For these purposes the "value" of a benefit is the grossed-up taxable value of the benefit.

7. There are 3 important things to bear in mind about the reporting arrangements.

8. First, the value of benefits provided by the parish to ministers, assistant ministers and lay ministers do not have to be recorded on the group certificate of the minister etc.

9. Second, the value of benefits for other employees do not have to be recorded if the value of benefits is less than $1,000.

10. Third, certain benefits including those comprising meal entertainment and car parking benefits do not have to be included in determining the total value of benefits to be reported.

In Summary

11. If the only benefits your parish provides are benefits provided to ministers, assistant ministers or lay ministers which are currently exempt from fringe benefits tax, the reporting arrangements do not affect you.

12. If your parish provides benefits to other employees, the reporting arrangements for recording the value of those benefits on the group certificates of such persons will apply. You should have been keeping a record of the value of the benefits provided since 1 April 1999.

13. As indicated in the Tax Office mail out, you may be asked to give persons working in your parish a reasonable estimate of their reportable fringe benefits for the fringe benefits tax year commencing 1 April 2000 because such persons may wish:

(a) to include this amount in their income estimates to be taken into account for the new family assistance thresholds, and

(b) to reduce tax instalment deductions to anticipate the new family tax benefit.

If you have any questions please contact me on 9265 1671.

Kind regards.

ROBERT WICKS
Legal Officer