Airline transport fringe benefits

This information forms Chapter 12 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).

The government has announced changes to the method of determining the taxable value of airline transport fringe benefits. The information in this publication about airline transport fringe benefits does not take these proposed changes into account because they are not yet law. If the proposed changes become law, they may impact on any airline transport fringe benefits provided on or after 7.30pm (AEST) on 8 May 2012. For more information about the proposed changes, refer to Reform of Airline transport fringe benefits.

12.1 What is an airline transport fringe benefit?

An airline transport fringe benefit arises where employees (or their associates) of airlines or travel agents are provided with free or discounted air travel subject to the stand-by restrictions customarily applying to employees in the airline industry.

Free or discounted air travel that is not subject to such restrictions is a residual fringe benefit.