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5.8.1 Overview of Fringe Benefits

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Last amended: 14 October 2013

Fringe Benefits (SP, AP, ISS, WW)

For the purposes of service pension, age pension (paid by DVA on behalf of Centrelink), income support supplement and war widow/widowers pension, fringe benefits can be defined as any assistance towards purchasing goods or services at a concessional rate not available to the general public.

These fringe benefits are available to eligible veterans and their dependents residing in Australia. Eligible pensioners are issued with a card which confirms their entitlement to fringe benefits and the duration of the entitlement. The two cards that entitle recipients to fringe benefits are:

Pensioner Concession Card (PCC)

Service pensioners and income support supplement recipients are issued with a PCC to confirm their entitlement to fringe benefits.    

Reinstated PCCs were also issued to people whose income support pension was cancelled on 1 January 2017 due to changes to the assets test.  There is no requirement for people in this category to be receiving an income support pension.

 

Transport Concession Card (TC1)

TC1 provides State funded and determined rail travel concessions for war widows/widowers who do not receive a Pensioner Concession Card. The following States provide TC1s:

Fringe benefits (income test assessment)

Fringe benefits can also be a benefit either an employee or an associate, such as a spouse or child of the employee, receive because of their employment.

Where the non-grossed up value of fringe benefits exceeds $2,000 (for a fringe benefits tax year), the grossed-up value of those benefits are required to be recorded on the employee's payment summary.  This is a reportable fringe benefits amount.  The taxable value of fringe benefits is grossed-up to ensure the value of fringe benefits is consistent with other types of income reported on the payment summary.

The non-grossed-up amount of a fringe benefit reflects the actual cost to the employer of the goods or services provided.  The grossed-up amount reflects the gross salary that would have to be earned to purchase the benefit from after tax dollars.

For income support purposes, the value of non-grossed-up fringe benefits is to be reported whether or not it is a reportable fringe benefits amount recorded on a payment summary. This includes fringe benefits from any source, not just from an employer.

Where an employer pays an amount of fringe benefits in arrears, the non-grossed up amount needs to be determined and the person's annual rate of income should be retrospectively determined with the non-grossed up fringe benefits amount applied to the year in which the person derived their legal entitlement to the payment.