What you need to know about end of FBT year
The finishing line of the Fringe Benefit Tax (FBT) year is in sight. 31 March is always a hectic day at RemServ with 24 hours of last-minute processing as many of our customers spend frantically to use up their remaining balances.
At RemServ, we understand the end of March can be a stressful time. So, let’s take a look at how you can ensure you maximise your salary packaging benefits before the end of the FBT year (EOFBTY) to avoid any last-minute panic on 31 March.
The FBT year runs from 1 April to 31 March, and once the clock ticks over, a new cap limit is allocated – so to ensure you receive your full entitlement you should try to spend your full cap limit within that 12 month period.
Some people end up with a large balance remaining, late in March, and experience time-related stress because of this. You’d be surprised how tricky it can be to spend a couple of thousand dollars when the pressure is on. This is why EOFBTY can be a full-on time for us at RemServ and for our customers, and we recommend you spend your balance before 31 March to avoid a rollover.
So, what is a ‘rollover’?
A rollover occurs when an available balance is not spent or claimed by 31 March and ‘rolls over’ into the next FBT year.
Firstly, it’s important to note you won’t lose this money. It will remain in your account, however, because the FBT year has changed, when you do spend or claim the money, it will be reported and deducted from the cap limit during the new FBT year.
The same goes for your RemServ Wallet Mastercard. If you have unused funds after 31 March, the money will remain on your card for you to access, however, the rollover amount will be automatically deducted from the new FBT year cap’s limit.
Let’s say come 31 March, you have a remaining available balance of $1,000 in funds and have maximised your salary packaging FBT health cap of $9,010. On 1 April when the new FBT year starts (1 April to 31 March) and your new FBT cap limit of $9,010 is allocated to you, your $1,000 in unspent funds will remain in your account and will be available for you to use in the new FBT year.
However, if you end the current FBT year on 31 March with $1,000 left of your available FBT cap limit, this amount will not roll over into your new cap limit when it resets from 1 April.
What can you do about a rollover?
There are ways around this so, even if you have incurred a rollover, you may be able to salary package your full entitlement. Talk to your RemServ Customer Care Consultant to see whether you’re able to claim funds using a benefit above your cap (such as work-related expenses or superannuation).
It’s easier to avoid this scenario and have a plan in place to ensure you spend or claim all your available funds within the current FBT year. So, remember to keep that all-important 31 March date in mind, and check your balance regularly via the RemServ app or RemServ Online for a stress-free EOFBTY.
For more information about managing your account, including our key dates for this year, visit our dedicated EOFBTY page here.
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.