The Government has changed the way fringe benefits will be treated for the calculation of several tax offsets from 1 July 2017.
The meaning of “adjusted fringe benefits total” has been modified so that the gross rather than the adjusted net value of reportable fringe benefits is used. This change impacts the way a taxpayer’s entitlement for certain tax offsets is calculated. The low income superannuation tax offset, the seniors and pensioners tax offset, the net medical expenses tax offset and the dependent tax offsets are all affected.
Currently, the reportable fringe benefits amount is adjusted down for the purposes of calculating the adjusted taxable income for those benefits.
Note!
If you provide fringe benefits to your employees, talk to us to find out if this change impacts your business.