Financial yr and RFB??

Can someone explain to me why the tax year is 1st July to the 31st june but the reportable fringe benefits on group certificates is calculated from 1st april to 31st March????

Isn't all meant to be one financial year???

From having done payroll and finance, I suspect it is due to the amount of work it takes to work out someone's reportable fringe benefits figure. It relies on a lot of statements to come through and sometimes info from the employee. There is no way that it could all be done before the July 15th deadline of issuing payment summaries.

i'm pretty annoyed and SOOO SCARED i'm going to get a tax bill now from centrelink.
When I reported my RFB i did a significately smaller amount as i thought it was also july to june NOT april to march. So this is now going to affect my FTB yes...

Can't really comment on how it affects Centrelink, I dealt with the preparation of payment summaries etc, but have not the other end of it all. Hopefully one of the ladies that knows more about the Centrelink side of things will pop in for you.

Do any centrelink girls here know???

Hi jennjorja,

As Astrid mentioned earlier the FBT year is different for compliance reasons. To get your reportable fbt figure the company's FBT return needs to be completed. This takes time and the returns need to be completed and processed before your payment summary is issued on 15 July. FBT returns are due to be lodged at the end of May, so that's why the FBT year ends at 31 March.

I'm not a centrelink person but I do know they include reportable fringe benefits in your 'income' when working out entitlements to Family tax benefit etc. So this may have cause you to be overpaid. I think they take your reportable amount on your payment summary and times it by 0.535 to come up with the fringe benefits amount that is included as your income. so it might not be as bad as you think it's going to be?

Hope this helps a little.