Fringe Benefits Tax and How Does It Work?

AnyFurtherDiscount on 22/09/2023 - 13:27

Hi Experts,

This is question from my friend, well, not a friend, a F*** buddy. And yes, I know it weird when we talk about tax problem after sex?

He is a healthcare worker from overseas. Recently working in a Public Hospital in Melbourne. Given the Tax Free cap for Healthcare Worker is $9,010 through salary packaging. He does not have any Novated Lease, Entertainment (Well, His entertainment is with me) or anything beside the $9010 tax free.

He lodged his tax return on MyGov. Some information is not pre-fill for him. Contacted Payroll, not helpful and too much hassle. (They say we have 25,000 employees and take some times to attend your request). He waited patiently and payroll call him after 5 weeks, tell him the figure over the phone? He filled into MyGov but something not right, but the payroll lady does not understand his accent?

She asked him to fill in FBT Column $16,999
All he received was $9,010 tax free.

Will he get in any trouble with that?

I can't help him as I have no tax knowledge.

Thank you,

*You are welcome to make some fun or joking around, but be friendly and not offensive or rude.

Education & Work

Comments

  • zonra on 22/09/2023 - 13:43
    +20

    Jeebus, talk about TMI.

    • Gunnar on 22/09/2023 - 15:31

      OP also sounds like a ‘bro’

    • HeWhoKnows on 23/09/2023 - 08:34
      -1

      The tax office has plenty of information about this oj thier web site if OP wishes to enlighten themselves

      Not being thier business I would suggest OP definitely doesnt get involved!

      AND

      that OP's friend consults a tax agent to get the correct advice

      And note that the tax office can impose heavy penalties

  • coffeeinmyveins on 22/09/2023 - 13:44
    +7

    Entertainment (Well, His entertainment is with me)

    Is he paying for it?

    I can't help him as I have no tax knowledge.

    Neither do we. He has an accountant he should be speaking to, not asking his FkBuddy to post on ozbargain.

    As an aside,

    I don't think you know what a Fkbuddy is. It's definitely not someone where you go and post online about their tax requirements to help them. That's called a relationship with someone.

    I know it weird when we talk about tax problem after sex?

    It is weird, but what's weirder is making it a thing about your post as if you are showing off to us that you have a FkBuddy? You could have asked this question without any of those details.

    • AnyFurtherDiscount on 22/09/2023 - 15:31
      -3

      Use your finger to scroll pass this post !

      • timthetoolman on 22/09/2023 - 19:28
        +3

        use your finger

        Title of your sex tape

    • foxmulder on 22/09/2023 - 15:35

      It will make the post a lot more clutters with all the unrelated responses.

    • Muzeeb on 22/09/2023 - 15:49

      t what's weirder is making it a thing about your post as if you are showing off to us that you have a FkBuddy?

      I've seen this before. It's when people have had a long dry spell and then start getting lucky on a regular basis. They can't contain their excitement. Am I right op?

    • Iwantthebestprice on 22/09/2023 - 18:38
      +1

      lol you hit the nail on the head with this:

      “As an aside,

      I don't think you know what a Fkbuddy is. It's definitely not someone where you go and post online about their tax requirements to help them. That's called a relationship with someone.”

      I’ve had f**buddies and not once after se* did a discussion about tax come up lol, I’m thinkin OP is making a weird flex move on a Friday night as his sitting at home talking about his fake FB…

  • Drakesy on 22/09/2023 - 13:55

    Has he used salary packaging in any way shape or form, be it a credit card paid pre-tax from a salary packaging provider, a car or even a car bay?

    You can't claim FBT on nothing (you need to purchase something pre-tax). Sounds like he may've committed tax fraud and will need to revise. Talk to an accountant though.

    And i mean it's great that you have what you have but if there was ever a TMI this is it…

    • AnyFurtherDiscount on 22/09/2023 - 15:32

      He received Salary Packaging through Maxxia and only $9010. Thats all he got. Nothing else.

      • Jake D on 22/09/2023 - 16:14
        +1

        Shouldn't they provide a statement of how much should be claimed?

  • newjerseydamo on 22/09/2023 - 13:57
    +2

    Sounds like a job for a professional…. accountant.

  • JimB on 22/09/2023 - 14:04
    +1

    FBT, FWB, PBI…

    Ask payroll who his salary packaging company is and go from there.

    Of course, speak to his accountant or find one if he doesn't yet have one.

  • netjock on 22/09/2023 - 14:07

    FBT isn't straight forward. If the FBT is $17k it is worth speaking to an accountant. Spend $100 to save a thousand or two.

    There is non for profit allowance that is tax free (if you spend it on certain things and meet the criteria)

    Then there is stuff that attracts FBT for the employee because it isn't a legit business expense although picked up by the employer

  • cheese-crackers on 22/09/2023 - 14:33
    +4

    Sounds right - the payroll have provided the grossed up FTB amount. Check the ATO page here: https://www.ato.gov.au/Rates/FBT/#GrossupratesforFBT

    • miwahni on 23/09/2023 - 00:17

      This is right. The tax free portion of his income is the equivalent of $16999 taxed income. Hence the higher figure on the income statement. The gross income shown towards the top of the income statement doesn't include the tax free portion at all.
      So his income was Gross + ($16999/ 1.887 approx).

  • HardQuiz on 22/09/2023 - 14:35
    +2

    Does he have a meal entertainment card as part of his salary packaging ?

    • Jimothy Wongingtons on 22/09/2023 - 14:49
      +4

      sounds like old mate is already getting a mouthful at home?

    • AnyFurtherDiscount on 22/09/2023 - 15:33

      No, he does not. Only the $9010 and thats all.

      • sumyungguy on 22/09/2023 - 16:12
        +1

        He has to allocate it to something from his employer's allowable benefit list via Maxxia - what did he spend his pre-tax salary on?

  • foxmulder on 22/09/2023 - 14:42

    I asked this question to Bard, it responded and completely ignores the f-buddy bit.

    • foxmulder on 22/09/2023 - 15:06
      +1

      Anyway, I feel like the amount $16999 is correct. See this vid. Taxable amount for $9010 x $1.8868 = $17000. Your friend may need to double check with payroll dept to see if this FBT amount is correct.

  • Muzeeb on 22/09/2023 - 15:07
    +2

    FBT = F@#k Buddy Tax?

    I'm confused.

  • eapster on 22/09/2023 - 15:24
    +6

    Any benefit that an employee gets is grossed up for the purposes of reporting to the ATO.
    In this instance, your friend received $9,010 in benefits. Assuming that all the benefits he received were GST free, we would need to apply a gross up factor of 1.8868 to get $17000 which is the figure you were given.
    ATO

    The gross up factor reflects the gross salary an employees would have to earn at the highest marginal tax rate to buy the benefits themselves.

    • AnyFurtherDiscount on 22/09/2023 - 15:52

      THANK YOU !

      • sumyungguy on 22/09/2023 - 16:20

        This explains the FBT limit applicable to his employment sector (hospitals), but doesn't account for how he spent it. If he chose not to salary package any benefit item, there's no impact on his tax return.

    • loropy9 on 22/09/2023 - 16:14

      I'm pretty sure this is the correct answer. It didn't require the sexual background of the client though :)

  • Typical16-bitEnjoyer on 22/09/2023 - 17:06
    +3

    IF ONLY THERE WAS AN ENTIRE PROFESSIONAL FIELD AND INDUSTRY THAT COULD ANSWER FINANCIAL SITUATION SPECIFIC QUERIES LIKE THIS.

    • sumyungguy on 22/09/2023 - 17:19

      I agree, but DIY tax is now wholly accessible… for people who are prepared to read stuff.

      • Typical16-bitEnjoyer on 22/09/2023 - 19:40
        +1

        … for people who are prepared to read stuff.

        The decision to post here first, and the contents of that post, lead me to conclude…they aren't :)

    • zonra on 22/09/2023 - 19:45
      +3

      Yeah but imagine the accountant’s face when OP started talking about their f*kbuddy though.

  • KSMLJ on 22/09/2023 - 21:14

    Feel like the title wasn't clickbait enough, considering the juicy bits in the actual post.

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