2. Review FBT Settings

Is your business exempt from Fringe Benefit Tax (FBT) under section 57A of the FBTAA 1986?

If so, make sure you have configured this via the ATO Settings page within Payroll settings.

By default, we select the No option, but it is important to review the setup. It will help make sure you report correctly any reportable fringe benefits amounts in the finalisation event and the employee's Income Statement.

For businesses with multiple employing entities set up, please note that you must configure the FBT settings for each employing entity. We can do this via clicking through to the relevant employing entity via the Employing Entities submenu within Payroll Settings:

If a business is exempt from FBT under section 57A of the Act, the employee's whole RFBT amount is reported as tax-free. If the business is not exempt from FBT under section 57A of the Act, the employee's whole RFBT amount is reported as taxable.

Before 16th July 2021 there were an additional two sub-settings which separated out the type of organisation and the entitlement of employees to a separate cap for salary-packaged entertainment benefits. We have removed these options as they do not impact the reporting of RFB amounts for employees via STP or payment summaries and are redundant. As a result, the following will also occur:

• Any existing lodged STP events that did not have RFB amounts reported will only have one RFB column called RFBA displayed in the event.
• If any existing lodged STP events have RFB amounts reported in the RFBA–Entertainment or RFBA–Other column, the applicable RFB column will remain in the event as will the amounts previously reported. Previously entered RFB amounts are maintained despite this change.
•  As per new STP events created, there will only be one column for RFBA.