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How do I set up FBT Exemption?

Created on  | Last modified on 

Summary

From the financial year ending 2016/17, the ATO has made changes to the reporting requirements for company’s and employees who receive fringe benefits. This article contains steps to set FBT Exemption up in Sage WageEasy.

Resolution

Reporting FBT Exemption

Changes for ATO compliance – STP Changes (ATO Payment Summary format changes) for reporting FBT (fringe benefits tax) Exemption

From the financial year ending 2016/17, the ATO made changes to the reporting requirements for company’s and employees who receive fringe benefits.

Further information on reportable Fringe benefits available on the ATO website at
https://www.ato.gov.au/general/fringe-benefits-tax-(fbt)/ 

Types of organisations that are FBT exempt, that is, exempt from paying FBT, include public benevolent institutions, health promotion charities, public and not-for-profit hospitals and public ambulance services.

A new option has been added to the Company Details configuration under Taxation > Tax Configuration to allow for setting the company as FBT Exempt. When selecting this option, the Employee is automatically set to FBT Exempt also within the Employee file under Payments > ATO Summaries. Please continue to enter any reportable Fringe Benefits amounts in the relevant field in employee file.

In the instance that an organisation has an employee who has worked two roles, where one is FBT exempt and the other role not, a second employee file will need to be created to accommodate the non-exempt role (untick the FBT Exempt box within the employee file) and required second ATO Payment Summary. This second employee file would contain no payslip data, simply the manually entered reportable Fringe Benefit value and unticked FBT Exempt setting.

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Further information on reportable Fringe benefits available on the ATO website at
https://www.ato.gov.au/general/fringe-benefits-tax-(fbt)/ 

Company Details > Taxation > Tax Configuration

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Employee > Payments > ATO Summaries

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STP:

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Depending whether or not the FBT Exempt box is ticked or not, the employee FBT will either appear in the Exempt box (Example above) or FBT box in STP (ATO Payment Summary which is no longer required, will either be marked as No or Yes against Is the employer exempt from FBT under section 57A of the FBTAA 1986).

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NB: If there is no reportable fringe benefits amount entered under Payments > ATO Summaries – Fringe Benefits and regardless of the FBT Exempt indicator,  the No and Yes boxes for the 'Is the employer exempt from FBT under section 57A of the FBYAA 1986?' on the ATO Payment summary will be left blank.