FRINGE BENEFITS TAX (FBT)

Fringe benefits tax (FBT) is the tax on some of the benefits provided to employees but employers are the responsible party to pay this tax to Government.

The financial year of FBT assessment is from 1 April to 31 March of the following year.

 

Tax on the defined benefits can either be part of the employees’ salary/ wages package or it can be an addition to the terms agreed to the salary/wages package. Moreover, FBT applies to all levels of employees, from directors to junior staff, as long as the benefits amount are more than the threshold set by ATO.

FRINGE BENEFITS TAX

Different Types of benefits Subject to FBT:

 

The following benefits are subject to FBT no matter whether the benefits are provided by the employer or a third party and also no matter whether the employee or his/her associates are receiving them:

Note: If you are an employer who provides the above-mentioned fringe benefits to your employees, you have to register for fringe benefits tax (FBT) with ATO.

 

FBT Submission Deadline:

 

FBT report and payment for 1 April to 31 March period must be made before 21 May to prevent any penalties.

 

FBT Exemptions:

 

However, if you are registered for FBT and you did not provide any fringe benefits, you must file the notice of non-lodgment

 

There are some conditions in which the FBT is exempted: