Fringe Benefits Tax (FBT) is paid differently than a salary or wage. It is paid to an employee who may be current, future or past, a director of a company and a beneficiary of a trust who is employed by the business.
What is a Fringe Benefits Tax
FBT is separate to income tax and is calculated on the taxable value of the fringe benefit. The employer must self-assess their FBT liability for the FBT year (that is, 1 April to 31 March) and lodge an FBT return.
Fringe benefits examples:
- discounted loans for employees
- gym memberships
- allowance of work car use for private purposes
- reimbursements of school fees
Lodging and paying FBT
The FBT year runs from 1 April – 31 March. Annual FBT returns must be lodged and tax paid by 21 May each year. Returns lodged through tax agents may qualify for extended due dates. Annual FBT liabilities of $3,000 or more are paid by quarterly instalments as part of the employer’s business activity statement.
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