Property and expense fringe benefits

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Property and expense fringe benefits


Are you?
  • 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.
You should: 
  • 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 and expense fringe benefits

  1. Property fringe benefits will arise when an employer provides an employee with free or discounted property.
  2. Property fringe benefits can be in the form of general (external) benefits or in-house benefits.
  3. 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.
  4. 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.
  5. Expenses may be classified as business, private or a combination of the two.
  6. For more information on property fringe benefits, click here.
  7. For more information on expense fringe benefits, click here.
Remember: – Be aware of the correct classification of fringe benefits provided to your employees.
This article was published on 13/01/2014 and is current as at that date

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.


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