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.
This article was published on 13/01/2014 and is current as at that date
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