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  • Fringe benefits tax gap 2017-18

    This information is for historical purposes only. If you require previously published content for past estimates, please email

    In this document you'll find information on the estimated fringe benefits tax (FBT) gap. This gap forms a part of our overall tax performance program.

    FBT is a deductable business expense for employers. In estimating this tax gap, we needed to account for this deduction and calculate the revenue effect of this on the net gap estimate.

    For 2017–18, the net FBT gap estimate was around $1.04 billion or 21.2%. In other words, we estimate that those with an FBT liability paid around 79% of the total theoretical tax payable by them in 2017–18.

    It is relevant to note that a purpose of the FBT system is to inhibit non-taxed employee remuneration and FBT might be considered to be a component of the broader Pay As You Go Withholding (PAYGW) / income tax on salary and wages regime. On this basis, noting that in 2017-18 the net PAYGW gap was 1.8% the overall gap in relation to the taxation of employee remuneration, in percentage terms, is significantly lower than the FBT gap on its own. With FBT and PAYGW viewed together, the integrated gap is approximately 2.3% in 2017-18.

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      Last modified: 11 May 2022QC 69511