Fringe Benefits Tax (FBT) 

Fringe benefits are an important part of business and can be a useful way of attracting quality staff. When providing fringe benefits, you need to be aware of taxation obligations.

FBT is a tax payable by employers for benefits paid to an employee, or an employee’s associate, in place of salary or wages. For example, an employee may receive fringe benefits in the form of:

• a car
• car parking
• low interest loans
• payment of private expenses.

If you provide fringe benefits to your employees, the Australian Taxation Office (ATO) recommends that you register for FBT.