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.