Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee (or an employee's associate e.g. a family member) in place of salary or wages.
The benefit may be in addition to, or part of, their salary or wages package.
If you are a director of a company or a beneficiary of a trust working in the business, benefits you receive in connection with your employment may be subject to FBT.
FBT is separate to income tax and is calculated on the taxable value of the fringe benefits provided.
The FBT year runs from 1 April to 31 March.
Fringe benefits tax (FBT) law includes various categories of fringe benefits and specific valuation rules for each category.
You will need to pay FBT even if the benefit is provided to an associate of your employee or by a third party under an arrangement with you.
Following benefits are subject to FBT
Car fringe benefits
Car parking fringe benefits
Entertainment and fringe benefits
Expense payment fringe benefits
Loan fringe benefits
Debt waiver fringe benefits
Housing fringe benefits
Board fringe benefits
Living away from home allowance fringe benefits