If an organisation actively provides perks its workers, it is likely aware that any additional benefits or incentive provided to an employee is often classified as a fringe benefit and is thus liable to the application of fringe benefits tax (FBT). In essence, if an individual receives a benefit as a result of their work, it is likely to be classified as a Fringe Benefit.
This implies that other than getting monetary compensation in the form of pay and wages, employees are also provided with supplementary benefits that possess a quantifiable monetary worth. Therefore, if a company opts to provide a reward in the form of a gift card, event tickets, or karate lessons, it is possible that such a reward may be seen as a fringe benefit.
The calculation of Fringe Benefits Tax (FBT) is based on a distinct fiscal year from that of Income Tax. The Fringe Benefits Tax year is distinct from the financial year, spanning from April 1st to March 31st.
There exist several exclusions within the Fringe Benefits Tax (FBT) regime, specifically pertaining to benefits of a "minor" kind.
Frequently available exemptions and concessions for Fringe Benefits Tax (FBT).
Minimise your Fringe Benefit Tax (FBT) liability by exploring alternate methods such as providing cash bonuses.
Minimising your Fringe Benefits Tax (FBT) obligation
One can effectively minimise their Fringe Benefits Tax (FBT) liability by employing strategies such as substituting fully taxed fringe benefits with alternate options or offering concessional benefits.
Work-Related items
Work-related items that are free from Fringe Benefits Tax (FBT) include those that are primarily used for work purposes and have a value of less than $300. These things are considered minor and infrequent benefits and are thus not subject to F
There are a lot of work-related items that are exempt from Fringe Benefits Tax (FBT), including portable electronic devices and implements of trade.
The concept of a minor benefits exemption refers to a provision that grants certain advantages or privileges to those who meet specific criteria, typically pertaining to their age or status as minors.
Minor benefits exemption.
The exclusions pertaining to taxi services, ride-sourcing platforms, and public transportation.
The transportation of employees to or from the office, either by taxis or public transport operated by the organisation, may potentially qualify for an exemption from Fringe Benefits Tax (FBT).
Emergency Assistance
Emergency help refers to the provision of immediate aid or support in response to a critical situation or event that poses a threat to individuals,
The exemptions provided by the Fringe Benefits Tax (FBT) pertain to emergency assistance, encompassing provisions such as first aid, emergency supplies, and temporary repairs.
Reskilling
The concept of retraining and reskilling exemption refers to the provision or allowance that exempts individuals from certain requirements or obligations while they do retraining or reskilling activities. Companies can verify the eligibility for claiming a Fringe Benefits Tax (FBT) exemption in relation to the retraining and reskilling of employees who have been made redundant, as well as for redeployment or job searching purposes.
The contributions made to authorised worker entitlement funds.
Please verify if donations made towards employee long service leave, sick leave, or redundancy benefits are eligible for exemption from Fringe Benefits Tax (FBT).
LAFHA and living-related exemptions
This item pertains to fringe benefits associated with accommodation and location. Specifically, it addresses the Fringe Benefits Tax (FBT) implications on housing, board, living-away-from-home allowance, as well as exemptions applicable to distant or abroad places and relocations.
Not for Profit
The Fringe Benefits Tax (FBT) discounts available to not-for-profit entities.
This topic pertains to the treatment of fringe benefits tax (FBT) for the perks given to workers of not-for-profit companies.
Motor Vehicles
This item relates to the topic of Fringe Benefits Tax (FBT) as it applies to automobiles, other modes of transportation, as well as expenses related to parking and tolls.
This topic pertains to the application of Fringe Benefits Tax (FBT) in the context of automobiles, including other motor vehicles, electric cars, car leasing, car parking, and road tolls.
