Fringe benefits tax - what you need to know

Introduction

As an employer who may be providing fringe benefits to your employees, you need to know how fringe benefits tax (FBT) works.

To understand how FBT works, you need to know:

• what is FBT
• who pays FBT
• the different types of fringe benefits
• what to do if you provide fringe benefits.

Although this information refers only to fringe benefits provided to employees, fringe benefits can also be provided to employees' associates (such as a family member). Fringe benefits can also be provided by an associate of the employer or a third party by arrangement with the employer.