FRINGE BENEFITS TAX (FBT)
What is fringe benefits tax?
Fringe Benefits Tax (FBT) is a tax that employers pay on specific benefits offered to their employees, their employees’ family members, or other associates.
FBT is calculated on the taxable value of the fringe benefit.
The FBT year runs different to an Australian financial year, being 1 April to 31 March.
If you have an FBT liability, you must lodge an FBT return and pay the FBT you owe.
What is a fringe benefit?
There are different types of fringe benefits, examples including,
- allowing an employee to use a work car for private purposes,
- car parking,
- paying or reimbursing an employee’s personal expenses,
- living away from home allowances,
- providing entertainment,
- giving an employee a discounted loan or
- giving benefits under a salary sacrifice arrangement with an employee and others.
Your fringe benefits tax liability
When offering taxable fringe benefits to employees, calculating your FBT liability involves specific steps.
To determine this liability, connect with NLJ Partners to understand your responsibilities as an employer and ensure accurate calculations are conducted.
