The FBT rate will decrease on 1 April 2017
The rate change is because of the 2% Debt Tax (Temporary Budget Repair Levy) on high-income earners which imposes a 2% levy on every dollar of a taxpayer’s annual taxable income over $180,000 from 1 July 2014 until 30 June 2017.
The FBT rate was brought into line with the Debt Tax to discourage high-income earners from using the FBT system to lower their taxable income. Assuming the Debt Tax does end on 30 June 2017 as anticipated and not extended, the FBT and gross up rates will decrease to previous levels from 1 April 2017.
FBT Year FBT Rate Type 1 Gross Up Rate Type 2 Gross Up Rate
1 Apr 2015 to 31 Mar 2017 49% 2.1463 1.9608
1 Apr 2017 onwards 47% 2.0802 1.8868
Carrick Aland has the approach and experience to assist you to properly manage your tax affairs and can look after you no matter what your circumstances. Call us in Dalby, Toowoomba or Chinchilla on 07 4669 9800.
