ABC Computers reimburses the telephone expenses ($120 per month), for each month of the FBT year ended 31 March 2020, of an employee. The employee has kept records showing that 70% of her telephone expenses relate to work calls. What is the taxable of this expense payment fringe benefit provided by ABC Computers?

Question

Quizplus · Accepted Answer

The taxable value of the expense payment fringe benefit is calculated by subtracting the work-related portion (70% of $120 per month) from the total expense ($120 per month) for each month of the FBT year (12 months). The work-related portion is $84 per month (70% of $120), so the personal portion is $36 per month ($120 - $84). Over 12 months, this amounts to $432 ($36 x 12).

ABC Computers Reimburses the Telephone Expenses ($120 Per Month), for Each