FBT settings

Introduction  

The FBT settings should reviewed at the start of every quarter to ensure that they still inline with the information you need to provide to IR.

Settings  

Return type

By default, the IR420 quarterly return is selected but you can change this to IR421 income year return or IR422 annual return, as applicable.

Auto de-minimis

By default, this feature is NOT turned on. To enable this feature, click the Auto De-Minimis button.

FBT rate

By default, the Low Alternate rate is selected but you can change this to the Single rate or the High Alternate rate.

If you pay FBT using the Low Alternate rate in any of quarters 1-3, you will benefit from lower payments in those quarters, but you then must perform alternate rate calculations in Q4 to true-up your full year position.

If you pay using the Single rate or High Alternate Rate in all quarters, you will likely pay a higher amount of FBT for the year, but will not be obliged to perform alternate rate calculations in Q4.

Subsidised Transport

By default, the $1,000 threshold is selected but you can change this to Pool all benefits, as applicable.