FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 135C What is a base year?

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 135C

  (1)   An FBT year is a base year of an employer if:

  (a)   the employer carries on business operations throughout the FBT year; and

  (b)   the employer lodges an FBT return for the FBT year within the time allowed for doing so under section   68; and

  (c)   as at the declaration date for the FBT year, the employer has kept and retained all the records that are (ignoring section   135E) required to be kept and retained under subsection   132(1) in relation to the employer's liability under this Act for the FBT year; and

  (d)   the employer's aggregate fringe benefits amount for the FBT year does not exceed the exemption threshold (see subsections   (2) and (3)) for the year; and

  (e)   section   135G does not apply to the employer for the FBT year (that section allows employers to work out their liability to pay tax using their aggregate fringe benefits amount from a previous base year, instead of the current FBT year).

Exemption threshold for 1996 - 97 FBT year

  (2)   The exemption threshold for the FBT year beginning on 1   April 1996 is $5,000.

Exemption threshold for later FBT years

  (3)   The exemption threshold for a later FBT year is the amount worked out using the formula:

where:

"exemption threshold" is the exemption threshold for the previous FBT year.

"indexation factor" is the number worked out, to 3 decimal places (rounding up if the fourth decimal place is 5 or more), under subsection   (4) for the later FBT year.

Indexation factor

  (4)   The indexation factor for an FBT year is the greater of:

  (a)   1; and

  (b)   the number worked out using the formula:

  (5)   In subsection   (4):

"earlier December year" means the period of 12 months immediately before the most recent December year.

"index number" , for a quarter, means the All Groups Consumer Price Index number for the quarter (being the weighted average of the 8 capital cities) first published by the Australian Statistician for the quarter.

"most recent December year" means the period of 12 months ending on 31   December immediately before the FBT year for which the threshold is being worked out.

Disregard new publications

  (6)   If the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published for that quarter, disregard the later publication.

Changed index reference period

  (7)   However, if the Australian Statistician changes the index reference period for the Consumer Price Index, take into account only the index numbers published in terms of the new index reference period.

Rounding down to whole dollar amount

  (8)   Round the subsection   (3) result down to the nearest whole dollar (if the result is not already a number of whole dollars).