Fringe Benefits Tax (FBT)

Fringe Benefits Tax (FBT)

Fringe benefits tax (FBT) is paid by employers on certain benefits they give to their employees or their employees’ associates (typically family members) in value of the employee’s employment.

FBT is separate from income tax and is based on the taxable value of the fringe benefits provided.

Employers can usually claim an income tax deduction for the cost of providing fringe benefits and for the FBT they pay.

A fringe benefit is a benefit provided to an employee (or their associate) because that person is an employee (or a former or future employee). Benefits can be provided by an employer, an combine of the employer or a third party under an arrangement with the employer.

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