Fringe benefits tax for small business

Quick guide to fringe benefits tax for business

• What is fringe benefits tax?
• What are the different types of fringe benefits?

If your business provides fringe benefits to employees you need to:

• calculate how much FBT you have to pay
• keep the necessary FBT records
• register for FBT
• report fringe benefits on your employees’ payment summaries
• lodge a return and pay FBT to the Tax Office
• understand which benefits are exempt from FBT

If you:

• make a car or other vehicle you own or lease available for the private use of an employee, you need to:
• calculate the taxable value of car fringe benefits for vehicles that qualify as cars
• calculate the taxable value of benefits provided as vehicles other than cars (residual fringe benefits)
• keep special records for car fringe benefits
• keep special records for vehicles other than cars
  (residual fringe benefits)
• pay for, or reimburse, an expense incurred by an employee, you need to:
• calculate the taxable value of the benefits
• know how to reduce the taxable value of the benefits
• keep special records for expense payment fringe benefits
• provide entertainment by way of food, drink or recreation, you need to:
• identify whether the provision of food or drink is entertainment
• calculate the taxable value of food or drink that is entertainment
• know when you can provide meal entertainment fringe benefits
• calculate the taxable value of meal entertainment fringe benefits
• keep special records for meal entertainment fringe benefits
• understand tax consequences of providing entertainment
• understand the common circumstances in which food or drink is provided
• know when you provide recreational entertainment to employees
• keep special records for entertainment that is not meal entertainment

Last Modified: Tuesday, 4 August 2009