Better practices for managing specific fringe benefit types

Introduction

This information outlines the legislative basis for fringe benefits tax (FBT) and provides guidance for managing specific benefit types. It outlines better practices that entities can adopt to help ensure that the capture and reporting of information for each benefit type complies with legislative requirements and related ATO rulings and guidance material.

The information is designed to help FBT Managers and other staff who have specific FBT responsibilities such as human resources staff, fleet managers and others involved in the day-to-day administration of FBT, to effectively meet an entity's FBT obligations.

Relevant legislation

FBT legislation comprises:

• Fringe Benefits Tax Assessment Act 1986 (FBTAA) which establishes the rules for assessment and collection of FBT
• Fringe Benefits Tax Act 1986 that imposes FBT on the taxable value of the fringe benefits (any change to the rate of FBT is effected by amending this Act)
• Fringe Benefits Tax (Application to the Commonwealth) Act 1986 which applies the FBT laws to Australian Government authorities and departments
• Fringe Benefits Tax Regulations 1992
• Fringe Benefits Tax (Application to the Commonwealth) Regulations

This information has not been prepared as a technical reference on FBT. Therefore, it is important that you use it in conjunction with, not as a substitute for, FBT legislation and ATO guidance.