Marginal tax rate of taxpayers with reportable fringe benefits

grade_taxinc	Count(TFN)	Sum(RPT_FRNG_B	MTR	New Tax	
1. less than 25000	86,732	1,745,287,525	0	0	
2. less than 180000	553,711	8,157,539,955	0.35	2,855,138,984	
3. greater than 180000	45,003	1,020,866,910	0.45	459,390,110	
	685,446	10,923,694,390		3,314,529,094	
				
30.3%	

Australian Taxation Office
Fringe Benefits Tax 1996-2010
Table 1

	FBT Year 2007	FBT Year 2008	FBT Year 2009	

Summation Options by FBT Year

Type 1 aggregate_Ind	55,133	53,106	48,965	
Type 1 aggregate _Amt	2,883,839,920	2,835,886,392	2,708,959,365	
Type 2 aggregate _Ind	20,222	17,841	16,007	
Type 2 aggregate _Amt	1,184,677,802	1,199,839,990	1,244,548,775	
Total	4,068,517,722	4,035,726,382	3,953,508,140	
Percentage type 1	70.9%	70.3%	68.5%	

Created on Friday, 13 November 2009
Australian Taxation Office Web page: www.ato.gov.au
SuperCROSS support: supercross@ato.gov.au
SuperCROSS. Copyright © 1993-2009 Space Time Research Pty Ltd. All rights reserved.

$m	2009-10	2010-11	2011-12	2012-13	
FBT	3,390	3,520	3,720	3,970	

FBT rate	46.5%	

Taxable value	
7,570	
Market value	3,780	

1. Tax on benefit	
1,147	
2. Increase in personal tax	1,068	
	2,215	

FBT foregone	
3,520	
Revenue impact	-1,305	

Impact of Defence Force exemptions

Exemption for benefits received by Australian Government employees in receipt of military compensation payments

Assumptions

Value of payments in 2010-11
$m	71

MTR	Gross up factor
35%	1.538462

Income level required to compensate
$m	109

Extra income tax
$m	38

Currently paying $71m, an extra $38m outlay in wages would be needed to compensate     defence force personel but would be clawed back through extra income tax. Gain to revenue matched by equal loss to outlays

War service loans provided under the Defence Services Homes Act 1918

Department of Veterans Affairs
Portfolio Budget Statements
Special Appropriations	Defence Service Homes Act 1918

2010-11
$m	3

MTR	Gross up factor
35%	1.538462

Income level required to compensate
$m	4.6

Extra income tax
$m	1.6

Exemption for health care benefits provided to members of the Defence Force

2010-11
Value of health care benefits	$m
Veterans Affairs	4873
Defence	295

Defence
MTR	Gross up factor
35%	1.538462

Income level required to compensate current defence
$m	453

Extra income tax	159

Assume no change to Veterans, i.e they will still get benefits and govt is already paying for these
so no change to bottom line even though there may be a difference to how the veteran receives the benefit?

Summary

Income tax
Gain to revenue
200

Government outlays
Increase in outlays
200

MTR 	35%

All data from TES 2009, using 2010-11 year
$m

2010-11 values

Assume persons in NFP sector have to "cash out" on their benefits

Capped exemption for public and not-for-profit hospitals

Taxable value of benefits

1,651

578

Capped exemption for public benevolent institutions

Taxable value of benefits

1,775

621

Capped exemption for charities promoting the prevention or control of disease in human beings

Taxable value of benefits

156

54

Fringe benefits provided to employees of religious institutions

value of benefits

392

137

Partial rebate for certain not-for-profit, non government bodies

2010-11 	0.48

Data

Rebate amount 	Non rebatable amt
103 	20

216

rebate = .48 * (gross tax - non rebatable amt)

103 = .48 * (gross tax - 20)

Therefore
Gross tax 	236

Grossed up value 	507

Taxable value 	259

Net FBT 	132

Tax on taxable value 	91

Cash out FBT currently payable 	46

Cost to revenue 	5

Meal entertainment

Market value

389

136

From costing model for ATO minute 540-2009.

Untimed.

Salary sacrifice
Revenue Impact	2009-10	2010-11	2011-12	2012-13	2013-14	Total	
FBT Company
ITW (inc timing) Total
GST	0	-12	-11	16	34	28
0	0	0	0	0	0
0	134	348	576	745	1,804
0	123	337	592	780	1,832	
	0	15	39	66	86	206	

Emp provided
By HOR	2009-10	2010-11	2011-12	2012-13	2013-14	Total	
FBT Company
ITW (inc timing) Total
GST	0	-28	-36	6	32	-25
0	0	-15	-51	-103	-169
0	27	70	116	151	364
0	0	19	72	80	170	
	0	1	3	6	8	19	

Total	2009-10	2010-11	2011-12	2012-13	2013-14	Total	
UCB (excluding GST)	0	122	356	664	859	2,002	

Assumptions	MTR	35%	
	FBT rate	45%	
	company tax rate	25%	
	Percentage of taxable companies	90%	

Removing certain concession and exemptions	
$m		

Private use

quantafiable
Cost of benefit less employee contributions    Gain to revenue	
D18 Discounted Valuation of stand-by travel for airline employees and travel agents	39	14
D33 Discounted valuation for car parking fringe benefits	58	20
D26 Exemption for small business employee car parking	27	9	
	45		
	
unquantafiable TES	TES estimate	Gone with the 30%
lower range	Upper range
D11 Exemption for employer contributions to secure childcare places in certain centres	1+	1	10	3
D35 Exemption for airline employees on stand by flights	2+	10	100	30
D36 Exemption of benefits in relation to compassionate travel	1+	1	10	3
D5 Reduction in taxable value for education costs of children of employees posted overseas	1+	1	10	3
D31 Concession for holiday transport for employees and their families posted overseas or to Australia	1+	1	10	3
D47 Reduction in taxable value for remote area holiday benefits	1+	1	10	3
D25 Exemption for certain loan benefits	1+	1	10	3
D39 Exemption for employer-provided motor vehicle parking	2+	10	100	30
D40 Exemption for engagement of a relocation consultant	1+	1	10	3
D46 Exemptions for employees living away from home	2+	10	100	30
37	370	111	

range mark

Incedental use

quantifiable TES
Taxable value of benefits	FBT revenue	Company d Revenue gain	
D16 Exemption for free or discounted commuter travel for employees of public transport providers	94	42	17	25
D17 Exemption for free or discounted travel to and from duty by police officers on public transport	5
D38 exemption for eligible work-related items	65	29	21	8
D32 Discounted valuation for board meals	28	13	9	3
D27 Record keeping exemption	..	..	..	..	
	40	
	
Unquantafiable TES	TES estimate	Gone with the 30%	
lower range	Upper range
D1 Exemption for benefits provided by certain international organisations	1+	1	10	3
D9 Exemption for accommodation, fuel and meals for live-in employees caring for the elderly or disadva	1+	1	10	3
D7 Exemption for travel costs of employees and their families associated with overseas medical treatme	1+	1	10	3	

..

range mark

D10 Exemption for emergency assistance	1+	1	10	3	
D13 Exemption for safety award benefits up to $200 per year per employee	1+	1	10	3	
D15 Exemption for employee taxi travel arriving at or leaving from place of work	2+	10	100	30	
D19 Exemption for certain long service awards for more than 15 years of service	1+	1	10	3	
D20 Exemption for certain relocation and recruitment expenses	2+	10	100	30	
D21 Exemption for compensation-related benefits, occupational health and counselling services and so	2+	10	100	30	
D29 Exemption for certain benefits provided to live-in employees who provide domestic services and are	2+	10	100	30	
D42 Exemption for minor private use of a company motor vehicle	1+	1	10	3	
D44 Exemption for the provision of food and drink in certain circumstances	1+	1	10	3	
D45 Exemption for transport for oil rig and remote area employees in certain circumstances	1+	1	10	3	
D22 Reduction in taxable value for reimbursements of car expenses incurred for occupational health an	1+	1	10	3	
D23 Reduction in taxable value of certain relocation and recruitment expenses	2+	10	100	30	
		60	600	180	

Mix of both	Gone with the 30% range mark

D12 Exemption for recreational or childcare facilities on an employer's business premises (recreational li	
2+		
10		
100	
30	
D34 Discounted valuation of arm's length transaction price for in-house property and residual fringe ben	N/A	?		?		500	
D43 Exemption for private use of business property	3+		100		1000	300	
						30	

Summary

Taxable FBT	-1,305

Defence	Income tax	200

Cars	859

Exemptions	quantifiable	  85 unquantifiable	321
plus	in house benefits	0 Assumed

NFP	1,532

Total revenue	1,690

Defence	Government outlays	-200

Total	1,490