Fringe benefits tax
What’s a fringe benefit?
Any items you provide to your employees that are not part of their normal salary are considered fringe benefits. This includes things like:
- allowing an employee to use a work car for private purposes
- paying for employee’s private health insurance
- providing entertainment through food, drink or recreation, or
- giving employees cheap loans
More comprehensive examples for fringe benefits can be found on theATO website.
The FBT year runs from 1 April to 31 March.
Fringe benefits tax rates
The FBT rate changes for the year ending 31 March 2015 onwards.
- FBT Year: Ending Mar 2014 (and prior years) Rate: 46.5%
- FBT Year: Ending 31 Mar 2015 FBT Rate: 47%
- FBT Year: Ending 31 Mar 2016 & 31 Mar 2017 FBT Rate: 49%
- FBT Year: Ending 31 Mar 2018 onwards FBT Rate: 47%
A full list of the FBT rates and thresholds can be found on the ATO website, including details on:
- Car fringe benefits statutory formula rates
- Deemed Depreciation Rates – Cars
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