What happens if I fail to meet my target kilometres?
At the end of each FBT year (31 March) you will be required to submit an odometer declaration stating your final odometer reading as at the end of March. FBT reconciliation will then be performed to ascertain whether sufficient provisions have been deducted from you throughout the year or alternately whether post tax contributions have sufficiently offset the FBT value. An adjustment will be made to either recover any FBT shortfalls or reimburse excess FBT deductions back to you. FBT shortfalls are normally recovered from your pre tax salary and FBT reimbursements are paid as taxable salary which requires income tax to be withheld at your marginal tax rate. Please note that if you have used post tax contributions to offset FBT then there is no FBT to be reimbursed. However, subject to your employers policy and your employment contract it may be possible to refund the portion of income tax that was withheld on the excess amount of your post tax contributions.
