Frequently Asked Questions

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Question:

How does Fringe Benefits Tax affect my lease?

Answer:

During the lease term, your employer is responsible for the calculation and payment of Fringe Benefits Tax (FBT). Your employer’s FBT liability for your lease may be passed on to you and incorporated into your salary package. Rewards can provide you with an estimate of the FBT applicable to your lease using the statutory cost method.

Please note actual kilometres traveled will determine the statutory percentage applicable to the FBT calculation. If you are uncertain about how these arrangements will affect your position, Rewards recommends you speak to your employer and obtain independent financial advice.

For more information about Fringe Benefits Tax (FBT) visit http://www.ato.gov.au/

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