What is a Reportable Fringe Benefit Amount?
When an employee receives a fringe benefit, the pre tax value, calculated at the highest marginal rate, is reported on the individuals’ payment summary when the benefit exceeds the reportable fringe benefit threshold. The reportable fringe benefit amount is not subject to income tax but is used for means testing of various government benefits and imposts. There may be other financial consequences because of this. Employees are advised to seek independent tax advice prior to entering into an agreement to receive a fringe benefit.
