Fringe Benefit tax (FBT)

Looking for a easier way to handle FBT 

FBT is only reported once a year, it can be a tad frantic when it comes time to lodge your FBT return.  To avoid this, Contact JRU Accounting for your FBT calculation and lodgement. 

Fringe benefits tax is a tax paid on certain benefits you provide to your employees or your employees' associates. FBT is separate from income tax and is based on the taxable value of the various fringe benefits you provide.

The FBT year runs from 1 April to 31 March.

What is Fringe Benefit

Fringe Benefits Tax (FBT) is a tax on employers that provide non-cash benefits to their employees.

Fringe benefits can include benefits (or what employees might think of as “perks”) like a company car, car parking, health insurance, meals and entertainment, computers, mobile phones and even a cheap loan. Another way of thinking about it: if an employee receives an obvious personal benefit, chances are it’s a fringe benefit.

For example, you provide a fringe benefit when you:

  • allow your employee to use a work car for private purposes
  • give your employee a cheap loan
  • reimburse an expense incurred by your employee, such as school fees
  • provide entertainment by way of food, drink or recreation.
Fringe Benefit Categories 
Fringe Benefit Reporting threshold 

Small fringe benefit amounts are not reported.  Where the taxable value is less than $2,000, there is no need to disclose the fringe benefits on the employee’s payment summary.

How Is FBT Calculated?

The reportable amount of the fringe benefits is the taxable value of the benefits grossed up to get the amount the FBT rate of 46.5% is applied to.

These rules are complicated and many benefits have there own valuation rules.  Please click on the link below for the relevant FBT Calculator:

Car fringe benefit tax calculator 

PBI, Health promotion charity and rebatable employers calculator