Exemptions of Fringe Benefit Tax

25-Jul-2011 Employers are required by the Fringe Benefits Tax (FBT) legislation to record on payment summaries if the taxable value of benefits provided to an employee exceeds $2,000 during the FBT year (from 1 April to 31 March). It is used to determine a taxpayer’s entitlement to certain income-tested tax concessions and liability to income-tested surcharges for the year.

Only certain fringe benefits provided to employees are required to report. The following benefits are exempt from FBT: 

     •  salary & wages; 

     •  infrequent benefits of less than $300 per employee; 

     •  car parking provided on business premises by a small business entity (business annual turnover is less than $2m) or by a business whose 
         assessable income was less than $10m before the relevant FBT year and the business is not a public company or a subsidiary of a public company; 

     •  car parking provided to disabled employees;

     •  employer provided taxi travel between home and work;

     •  compassionate travel;

     •  work-related items (including laptop computers, mobile phones, personal digital assistants and tools of trade).

If you have questions, please feel free to contact us.

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