1. During the 2020 FBT year, KLM Ltd reimbursed one of its employee's residential rent for a two month period.

The amount paid by KLM Ltd was $9,000.

Required: Calculate the employer's FBT liability for providing this Expense Payment Fringe Benefit to its employee.

NOTE: Remember to show the formulas and calculations you relied on.

Step 1 - Identify the Fringe Benefit type/ Is it Exempt?):

Step 2 - Calculate the Taxable Value 'TV' of the benefit type:

Step 3 - Apply the Gross-up rate for that FBT year (Type 1/ Type 2):

Step 4 - Apply the FBT tax rate for that FBT year:

2. During the 2022 tax year, resident Australian taxpayer, Carlos, received salary income of $70,000. He had allowable deductions of $10,000.

His employer made PAYG withholding deductions on his behalf in the amount of $6,900.

Step 1 - Calculate TI:

Step 2 - BITL:

Step 3 - Deduct Offsets:

• LITO:
• LAMITO:
• FTO:

Step 4 - Deduct PAYG:

RESULT: