Employers normally pay FBT if they provide non-cash or in-kind benefits to employees other than salary and wages. Examples of types of benefits:
- Motor vehicles available for private use
- Free, subsidised or discounted goods and services
- Low-interest or interest-free loans
- Employer contributions to sick, accident or death benefit funds, superannuation schemes, and specified insurance policies.
Employers can pay FBT at either 43% or 49.25% of the taxable value of fringe benefits provided for the first three quarters of the tax year.
If the 43% rate is used in any one of the quarter 1 to 3, complete either the “full” multi-rate calculation or the “short” form option in the fourth quarter.
If the 49.25% rate is used in the first three quarters, either complete the multi-rate calculations in the fourth quarter or pay FBT AT 49.25%.
Certain low value exemptions apply – the tax threshold for exempting unclassified benefit from FBT IS $300 per employee per quarter and $22,500 per employee per annum.
Learn more … Refer to the FBT Guide