Fringe Benefits Tax (FBT)
FBT is a tax employers pay on certain benefits given to employees such as rights, privileges and services given to employees. Examples of some benefits are
• Work car given to employee for personal use.
• Paying employee personal bills such as health insurance cost, school fees for kids.
• Paying for the cleaning services for employee residential place.
• Charging less interest rate on the loan provided to employee by business.
• Covering the cost for food, drink and recreation for employee.
Fringe Benefits Tax is separate from income tax and is based on taxable value of the fridge benefit provided.
FBT year runs from 1st April to 31st March.
Below are some of the Fringe benefits Categories
• Car Fringe Benefits
• If the car is available for private use.
• Loan Fringe Benefits
• If you charge no or low interest on loan to employee.
• Debt Waiver Fringe Benefits
• If you sell goods or services to employee and tell them not to bother about paying.
• Expense payment Fringe Benefits
• Reimburse employee for expenses they incurred.
• Housing Fringe Benefits
• Accommodation provided to employee at no or low rent.
• Board Fridge Benefits
• Benefits arise when you provide accommodation to an employee and there is an entitlement to at least two meals a day.
• Airline Transport Fringe Benefits
• Travel agent providing free or discounted air travel.
• Living-away-from-home allowance Fringe Benefits
• Provide an allowance to cover additional expenses because they ate temporarily away from home.
• Providing Entertainment
• Way of providing food, drink or recreation to employee.
• Car parking fringe Benefits
• Car parking facility provided to employee. Car parking threshold applies.
Call Tax Accountants Cranbourne at 1300 300 106 for further information.