Register for Fringe Benefits Tax (FBT)
What is fringe benefits tax (FBT)?
Fringe benefits tax is a tax paid on certain benefits you provide to your employees or your employees' associates. FBT is separate from income tax and is based on the taxable value of the various fringe benefits you provide.
The FBT year runs from 1 April to 31 March.
When to complete this form
We recommend that you register for FBT once you have established that you have to pay FBT.
Register for Fringe Benefits Tax
Fringe benefits are an important part of business and can be a useful way of attracting quality staff. However, if you're going to provide fringe benefits to your staff, you need to be aware of your taxation obligations.
Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee (or an employee's associate e.g. a family member) in place of salary or wages. This is separate to income tax and is calculated on the taxable value of the fringe benefits provided.
If you provide fringe benefits to your employees, the Australian Taxation Office (ATO) recommends that you register for FBT .
Why offer your employees fringe benefits?
To secure the best workers for your business, you often have to entice them with non-income related benefits.
For example, an employee may receive fringe benefits in the form of:
low interest loans
payment of private expenses.
It's entirely legal and a common form of reimbursement used by businesses for their employees.
How to provide fringe benefits
If your business provides fringe benefits to your employees then you need to:
calculate how much FBT you have to pay
register for FBT
keep the necessary FBT records
report fringe benefits on your employees' payment summaries
lodge a return and pay FBT to the ATO
understand which benefits are exempt from FBT.