Register for fringe benefits tax (FBT)

To get the best workers for your business, you may want to attract them with certain benefits.

For example, you may give employees fringe benefits like:

• a car for private purposes
• goods at a discount
• low interest loans
• reimbursement for private expenses, such as school fees

If your business provides fringe benefits to your employees then you need to:

• register for FBT
• calculate how much FBT you have to pay
• keep all records relating to the benefits you provide, including how you calculated the FBT you have to pay
• lodge a return and pay FBT to the ATO (generally by 21 May)
• include reportable fringe benefits on your employees' payment summary or Single Touch Payroll (STP) income statement

It's important to consider any FBT implications if you’re hosting a work event. Some Christmas parties for example can attract FBT. Consider:

• if you are a tax-exempt organisation
• how much the party costs
• where and when the party is held
• the value and type of any gifts you give at the Christmas party and who you give them to
• whether you invite clients and other associates

Generally, you won't pay FBT if you host a Christmas party for your current employees on your business premises on a work day and provide food and drink only, or keep the cost of the party below $300 per employee and certain conditions are met.

Find out if your party or function will attract FBT.