If you are an employer and you provide certain benefits to your employees or their family or associates, your business may be liable for fringe benefits tax.
For fringe benefits tax (FBT) purposes, an employee includes:
- current, future or past employee
- director of a company
- beneficiary of a Trust who works in the business.
Examples of fringe benefits include:
- allowing an employee to use a work car for private purposes
- giving an employee a discounted loan
- paying an employee’s gym membership
- providing entertainment by way of free tickets to concerts
- reimbursing an expense incurred by an employee, such as school fees
- giving benefits under a salary sacrifice arrangement with an employee
Please contact us if you are unsure or think that your business may be providing fringe benefits. For more information, click the link below: