Centrelink are changing the way that they include Reportable Fringe Benefit Amounts (RFBAs) in the calculation of income for family assistance payments and income support payments, increasing the percentage of Reportable Fringe Benefit Amounts (RFBA) included in the income calculation to 100% (currently calculated at 51%).
 

There are however exemptions to this, which apply to Eastern Health employees. If an organisation is FBT Exempt under section 57A of the Fringe Benefits Assessment Act 1986, the current 51% will continue to apply. Eastern Health as a Public Hospital, is FBT Exempt under section 57A of the Fringe Benefits Assessment Act 1986
 

In order for your RFBA to still continue to be calculated at 51%, employees must advise Centrelink that Eastern Health are FBT Exempt under section 57A of the Fringe Benefits Assessment Act 1986. Employees can do this as per one of the four methods advised by Centrelink on the letter that has been sent.
 

If employees do not advise Centrelink that Eastern Health is FBT Exempt under section 57A of the Fringe Benefits Assessment Act 1986, Centrelink will apply the default and include 100% of their RFBA in the calculation of their income as from the 1st January 2017.

For employees who work for more than one employer, they will be required to advise Centrelink for each employer of their FBT Exemption status.

 

More Information: 

https://www.humanservices.gov.au/business/news/way-we-assess-reportable-fringe-benefits-changing