Expense payment fringe benefits

This information forms Chapter 9 of Fringe benefits tax - a guide for employers. Remember, a fringe benefit may be provided by another person on behalf of an employer. It may also be provided to another person on behalf of an employee (for example, a relative).

9.1 What is an expense payment fringe benefit?

An expense payment fringe benefit may arise in either of two ways:

1. where you (the employer) reimburse an employee for expenses they incur
2. where you pay a third party in satisfaction of expenses incurred by an employee.

In either case, the expenses may be business expenses or private expenses, or a combination of the two.

It is important to note that the rules in this chapter apply to expenses incurred by an employee that are reimbursed or paid by you, the employer. They don't apply to goods or services you purchase directly and provide to the employee. Nor do they apply to goods or services purchased using your credit card. Goods or services acquired in these ways are subject to valuation under the property or residual benefit rules discussed in Property fringe benefits and Residual fringe benefits.