Tax Management & Compliance

Fringe Benefit Tax (FBT) Returns

A fringe benefit is a 'payment' to an employee, but in a different form to salary or wages.

For fringe benefits tax (FBT) purposes, an employee includes a:

• current, future or past employee
• director of a company
• beneficiary of a trust who works in the business.

Examples of fringe benefits include

• allowing an employee to use a work car for private purposes
• giving an employee a discounted loan
• paying an employee's gym membership
• providing entertainment by way of free tickets to concerts
• reimbursing an expense incurred by an employee, such as school fees
• giving benefits under a salary sacrifice arrangement with an employee.

The following are not fringe benefits

• salary and wages
• shares purchased under approved employee share acquisition schemes
• employer contributions to complying super funds
• employment termination payments (including for example, the gift or sale at a discount of a company car to an employee on termination)
• payment of amounts deemed to be dividends under Division 7A
• benefits provided to volunteers and contractors
• exempt benefits such as certain benefits provided by religious institutions to their religious practitioners.