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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.    

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.