2015 Odometer Readings & FBT Changes Ahead

Adam Roberts

With the end of the Fringe Benefits Tax (FBT) year rapidly approaching, the time has come to check the odometer readings for all vehicles held within associated entities. This odometer reading must be documented for each vehicle, as at 31 March 2015 (this Tuesday).

Your LBW representative will be sending a form to you shortly in respect of the vehicles held within these associated entities during the 2015 FBT year. It is important that the form is completed fully and that any new vehicles, or vehicles disposed of since 1 April 2014, are fully disclosed. For those entities which have purchased a vehicle since 1 July 2014 for the first time, please ensure that you also document this odometer reading, as we will be requesting this information from you at a later point in time.

It is also important that consideration be given to yourself or your employees’ current salary sacrifice arrangements. The following changes in FBT rates from 1 April 2015 may result in inequitable arrangements for you as an employer, or as an employee, moving forward.

FBT Year2015201620172018
FBT Rate47%49%49%47%
Gross Up Rates:-          Type 1 Benefits-          Type 2 Benefits 2.08021.8868 2.14631.9608 2.14631.9608 2.08021.8868
Capping Limits:-          Public Benevolent Institutions-          Health Promotion Charities-          Public and Not-For-Profit Hospitals-          Public Ambulance Services-          FBT Rebatable Employer $30,000$30,000$17,000$17,000$30,000 $31,177$31,177$17,667$17,667$31,177 $31,177$31,177$17,667$17,667$31,177  
FBT Rebate48%49%49%47%

LBW Chartered Accountants is able to assist you in a comprehensive review of your current salary packaging arrangements, analysis of the benefits of commencing a new arrangement, or review of the most effective structure to purchase a vehicle within. Please contact our Salary Packaging Specialist, Adam Roberts, to discuss your requirements.

Please contact your LBW representative if you require clarification on the above matters raised.

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