Fringe Benefits Tax (FBT) rate to decrease 1 April 2017
The FBT rate change is because of the 2% Debt Tax (Temporary Budget Repair Levy) on high-income earners which imposes a 2% levy on every dollar of a taxpayer’s annual taxable income over $180,000 from 1 July 2014 until 30 June 2017.
The FBT rate was brought into line with the Debt Tax to discourage high-income earners from using the FBT system to lower their taxable income. Assuming the Debt Tax does end on 30 June 2017 as anticipated and not extended, the FBT and gross up rates will decrease to previous levels from 1 April 2017.
|FBT Year||FBT Rate||Type 1 Gross Up Rate||Type 2 Gross Up Rate|
|1 April 2015 to 31 March 2017||
|1 April 2017 onwards||
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