Does my business need to pay FBT?

Broadly speaking a fringe benefit is a benefit provided to someone in respect of employment.  This includes benefits to former or future employees, as well as to their associates (such as relatives). You will need to pay FBT even where the benefit is provided to an employee or their associate through a third party under an arrangement with you.

FBT legislation specifically excludes certain benefits from being fringe benefits, the most common being salary or wages, superannuation, dividends and employee share schemes.  However the definition of what is a benefit provided by an employer is broad, requiring employers to carefully consider whether FBT is applicable in their various arrangements with employees.

Some common fringe benefits are where an employer:

• allows employees to use work cars for personal use
• provides loans to employees at reduced interest rates, or forgives that loan
• pays for or reimburses an employee for a non-business expense
• pays an employee’s gym membership
• provides employees with a living-away-from-home allowance
• provides entertainment by the way of food, drink or recreation to employees

These are only some of the categories of fringe benefits that need to be considered, with specific valuation rules applying to each category and some exemptions and concessional treatment available. We would encourage you to contact our office if you would like to discuss whether you are meeting your FBT obligations or if you have any FBT queries that we can assist your business with.

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”]

Contributed by Campbell Liggins[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]