Fringe Benefits Tax

If you hire employees in Australia, tax and employment laws may differ from those in your home country. An example of this is the fringe income tax (FBT), in which a separate tax is paid on benefits given to employees and their families. If you are new in Australia, How will you learn which types of fringe benefits are taxable and how are they reported and paid? This fringe income tax FBT guide will help you begin to understand and follow Australian regulations.

What are the fringe tax benefits in Australia?

There is a long list of fringe taxable profits, and each category has separate valuation rules for taxable income. Additional tax benefit types include:

  • Car and parking costs
  • Housing and food
  • Loans and debt relief
  • Entertainment

There is also a residual category to include non-listed benefit categories, so basically, any non-the commercial benefit will be subject to tax.

Do I have to pay the Fringe tax in Australia?

If your employees use the company’s assets for their own personal embellishment or enjoyment, you must pay Fringe tax (FBT). 

Need more information about Fringe Benefits Tax Australia?

The Fringe Benefits Tax or FBT refers to the provision of a range of non-wage employee benefits, including employee’s travel and expenses. The FBT system involves a number of reporting and compliance obligations that KPG Taxation can advise and help you meet. In addition to providing general advice on the impact and amount of FBT tax return you must pay, KPG Taxation also helps many companies with various FBT requirements, including preparing, reviewing, and filing returns. KPG Taxation team can optimize the FBT process by helping you:

  • understanding how Fringe Benefits Tax works in Australia
  • identify when an additional benefit is provided
  • access available exemptions and meet your obligations
  • contact your employees
  • Maintain contact with the Australian Tax Office on FBT matters
  • KPG Taxation will ensure that you meet your FBT obligations while minimizing your impact.
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