This fact sheet outlines the conditions that must apply before a fringe benefit provided by an employer to address security concerns relating to the personal security of an employee or an associate of the employee (for example, a relative) can be excluded from the reporting requirements.
The provision of personal security measures such as residential burglar alarms or drive-by security patrols to protect an employee and their family at their home will generally be a fringe benefit subject to fringe benefits tax (FBT).
If the total taxable value of certain fringe benefits provided to an individual employee in an FBT year (1 April to 31 March) exceeds $1,000, you must record the grossed-up taxable value of those benefits on your employee's payment summary for the corresponding income year (1 July to 30 June).
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The Government has announced that from 1 April 2007, the fringe benefits reporting exclusion threshold will increase from $1,000 to $2,000.
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Some fringe benefits don't have to be reported on an employee's payment summary. These benefits are called excluded benefits. Fringe benefits that are excluded from the reporting requirements are still subject to fringe benefits tax.
Effective from 1 April 2004 and subject to certain conditions, a fringe benefit provided to address security concerns relating to the personal safety of an employee or an associate of the employee (for example, a relative) may be an excluded fringe benefit. This means that:
- you do not have to report these fringe benefits on your employee's payment summaries, but
- you do have to pay fringe benefits tax on the taxable value of the fringe benefits provided.
If the conditions of the reporting exclusion are not met, the benefit may have to be reported on the employee's payment summary.
Last Modified: Wednesday, 20 June 2007