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  • FBT - home phone and internet expenses

    It's quite common for employers to pay a third party or reimburse their employees for home phone and internet costs. This may result in an expense payment fringe benefit.

    We've updated our Fringe benefits tax – a guide for employers to clarify how to work out the taxable value of the fringe benefit and the evidence you need to support it.

    Working out the taxable value of the fringe benefit will depend on both:

    • the amount you pay a third party or reimburse your employee
    • the percentage of the business use of the phone and internet the employee would otherwise be entitled to claim as an income tax deduction.

    There are different substantiation requirements depending on the amount you pay or reimburse your employee for home or internet costs during the fringe benefits tax year.

    Where the payment or reimbursement of home phone or internet costs:

    • is up to $50
      • limited documentation needs to be retained by the employee who should be able to explain the connection between employment and expenses incurred by the employee
      • your employee will need to provide a declaration to you detailing the percentage of business use
       
    • exceeds $50
      • you and your employee must keep records of the actual expenses
      • your employee will need to provide a declaration to you detailing the percentage of business use and the purpose of incurring the expense.
       

    See also:

    Last modified: 10 Jul 2019QC 59617