This information is brought to you by business.gov.au
To secure the best workers for your business, you often have to entice them with non-income related benefits. This might include a car, car parking, a low interest loan or payment of private expenses. It’s entirely legal and a common form of reimbursement used by companies towards their employees.
Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee or the employee’s associate (typically family members) in place of salary or wages. This is seperate to income tax and is calculated on the taxable value of the fringe benefits provided.
If you provide fringe benefits to your employees, the Australian Taxation Office (ATO) recommends that you register for FBT.
What to do…
- Go to the ATO’s Fringe Benefits essentials webpage.
- Read Fringe Benefits Tax for small business on the ATO website.
- Complete the Application for registration – fringe benefits tax form, and send it to the ATO.