Fringe benefits tax (FBT) is a tax paid on certain benefits employers provide to their employees or their employees’ associates. FBT is separate from income tax and is based on the taxable value of the various fringe benefits provided. The FBT year runs from 1 April to 31 March.
If your business provides fringe benefits to employees you need to:
- Calculate how much FBT you have to pay
- Keep the necessary FBT records
- Register for FBT
- Report fringe benefits on your employees’ payment summaries
- Lodge an FBT return and pay FBT to the Tax Office
- Understand which benefits are exempt from FBT.