Tax basics for small business

What are fringe benefits?

Basically, a fringe benefit is a benefit you provide to an employee (or their associate) because that person is an employee.

If you operate your business as a company or trust, it is likely you are an employee and/or director of that business.

You may be providing a fringe benefit when you do any of the following:

• allow an employee to use a work car for private purposes
• give an employee a low interest loan
• pay an employee's private health insurance costs
• provide cleaning services for an employee's private residence
• reimburse an expense your employee has incurred
• provide entertainment by way of food, drink or recreation to an employee.

Sections within Your FBT obligations

• What are fringe benefits?
• Work-related items exempt from FBT
• Your FBT obligations
• What you must do