FBT exemption cap
(a) The Employee must provide reasonable estimates of the GUTV of taxable non-salary packaging fringe benefits each FBT Year to the Supplier for monitoring the Employee’s position against the FBT exemption cap.
(b) In the absence of more accurate information, the Supplier may use the prior FBT Year information as an estimate for the purposes of monitoring to ensure the FBT exemption cap is not exceeded. Where the Employee’s circumstances have altered since the prior FBT Year, it will be the Employee’s responsibility to provide the Supplier with a revised estimate and the reason why it is necessary.
(c) Post-FBT Year adjustments in relation to any FBT liability which could occur inadvertently are the responsibility of the Employee, e.g. where the quantum of non-salary packaging fringe benefits was higher than estimated and/or factored into the Employee’s Salary Packaging Agreements.
(d) Conversely, where estimates of the GUTV of non-salary packaging fringe benefits were factored into the Supplier’s monitoring of the FBT exemption cap and the actual GUTV calculation was lower than estimated, the residual of the threshold lapses and does not carry over to the next FBT Year, in accordance with the FBT legislation.
(e) Where the Employee’s conditions of employment or position changes during the FBT Year (temporarily or permanently) altering the FBT status of the Employee, it is the Employee’s responsibility to formally advise the Supplier of the change within 7 days (failure to do so may result in the withdrawal of access to the Salary Packaging Agreements).
(f) The FBT exemption cap applies only to benefits provided while the Employee is working in and for the designated eligible business area or agency. Where the Employee is seconded, promoted, transferred to or relieving in an ineligible business area or agency, whether permanently, temporarily or part-time, and whether or not the Employee’s payroll processing site changes, regardless of which business area or agency bears the costs, the Employee will cease to be eligible for the relevant FBT exemption cap from the first day of the change.
(g) Where the Employee’s official duties, overall employment arrangements and reporting relationships are split between eligible and ineligible business areas or agencies, the Employee may no longer qualify for an FBT exemption cap depending on the specific provision of the FBT legislation applicable as determined by the Employer.
(h) Where the Employee’s FBT status al...
FBT exemption. Cap': The FBT exemption cap is a tax concession under the Fringe Benefits Tax Assessment Act 1986 for limited categories of employers. The FBT exemption cap is not an employee entitlement. The manner of the application of the FBT exemption cap is determined by the employer in accordance with the FBT legislation. Under the FBT legislation, to be eligible for the FBT exemption cap at the time fringe benefits are provided, the duties of the employment of an employee must be exclusively performed in, or in connection with, a public hospital.
FBT exemption cap
2.4.1 The following definitions will apply:
