Post-Tax Adjustment FAQs
Included in these FAQs
- What is a Post-Tax Adjustment (PTA)?
- Why do I have a PTA?
- What does it mean for me?
- How can I claim my PTA?
- When will the PTA be available?
1. What is a Post-Tax Adjustment (PTA)?
To explain a Post-Tax Adjustment, we need to explain what post-tax and taxable value means.
Post-tax is the part of your salary packaging deductions that is that is made from your pay after tax has been paid.
The taxable value is determined by the base cost of your vehicle and the agreed statutory percentage (click here for more info from the ATO). Novated and Associate car leases incur a Fringe Benefits Tax (FBT), which is calculated based on the benefit’s taxable value.
Fringe Benefits Tax can be avoided if we collect enough post-tax for your lease each year.
A Post-Tax Adjustment occurs when an excess amount of post-tax dollars has been collected. This excess can be claimed by the methods at the bottom of the page.
Example: If we collected $5,000 as post-tax dollars for your novated lease and the taxable value of your vehicle was $4,000 – you can claim $1,000 as pre-tax dolalrs (or before tax).
You can find the amount of post-tax collected on your EOY report under the column called ‘Post-tax contribution collected’.
2. Why do I have a PTA?
A PTA usually occurs if you travel more kilometres than you estimated and you move into a higher kilometre bracket or if your vehicle was unavailable and you claimed days unavailable. A PTA can also occur if you have declared a tax-free zone (Australian Defence Force employees only).
The amount of post-tax required would then be lower than the original estimate at the start of the FBT year. If this happens, we would have collected more post-tax than we needed, and we’d have an opportunity to return that tax saving back to you.
It is important to know that your total vehicle deductions were actually correct, but the mix between post-tax and pre-tax amounts had been calculated based on your original estimate.
3. What does it mean for me?
The difference between your post-tax contribution and your taxable value for the last FBT year can be returned to you as pre-tax dollars (before tax).
4. How can I claim my PTA?
There are three methods for claiming your PTA.
Please note: you will not be able to choose the method for claiming your PTA upfront – this will be determined by your salary packaging balance and PTA amount.
The methods are:
- Roll forward – your PTA will be rolled forward and we’ll collect less post-tax dollars for your novated lease this FBT year. Your post-tax deductions will decrease and your pre-tax deductions will increase, which means you'll be paying less tax for the rest of the FBT year.
- Deduct and pay – you choose how many pay periods the PTA amount will be deducted from your pay (tax-free), which will then be sent directly to your bank account 1-2 days after your pay day.
- Pay from balance - Funds from your salary packaging account will be used to pay the value of your PTA directly to your bank account.
5. When will the PTA be available?
Your Post-Tax Adjustment will be available after Monday, 26 May 2014 and further details will be sent to you closer to the date.