Fringe Benefit Tax

Providing benefits can be a great way to recognise and reward your employees’ contribution to your business, but you should remember that some benefits or perks are subject to Fringe Benefits Tax (FBT). This is a tax employers pay on certain benefits they provide to their employees. Listed below are items that apply to FBT taxable employers.

Types of taxable Fringe Benefits include:
•    The private use of a car
•    Low interest loans used for private purposes
•    Payment of private expenses
•    Certain types of entertainment e.g. meals where an employee is not travelling overnight
•    Other benefits if the cost is above certain thresholds

Please ensure you return your completed FBT questionnaires to our office as soon as practicable so we can determine if you have provided such benefits to your employees and are potentially liable for FBT.

Danielle Mills