Property and expense fringe benefits
- An employer that provides property or expense fringe benefits?
|At a glance:
- Fringe benefits tax (FBT) applies to certain benefits employers provide to their employees and their employees associates.
- Consider whether the property and expense benefits you provide to your employees give rise to FBT.
- Contact us if you require any clarification or advice.
- Property fringe benefits will arise when an employer provides an employee with free or discounted property.
- Property fringe benefits can be in the form of general (external) benefits or in-house benefits.
- For the purpose of FBT, property includes:
- Goods (including gas and electricity, unless provided through a reticulation system) and animals;
- Real property, such as land and buildings; and
- Rights to property, such as shares or bonds.
- Expense payment fringe benefits may arise when an employee is reimbursed by their employer for expenses they incur or where an employer pays a third party for expenses incurred by the employee.
- Expenses may be classified as business, private or a combination of the two.
- For more information on property fringe benefits, click here.
- For more information on expense fringe benefits, click here.
||– Be aware of the correct classification of fringe benefits provided to your employees.