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  • E – Expense payments

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Find out more

    Changes have been made to the FBT law to remove the concessional treatment of in-house expense payment fringe benefits provided under a salary packaging arrangement entered into on or after 22 October 2012. Transitional rules apply where an existing salary packaging arrangement was entered into before 22 October 2012.

    For more information, refer to Reform of salary sacrificed 'in-house' fringe benefits.

    End of find out more

    If you pay for or reimburse an expense an employee incurred, you may be providing an expense payment fringe benefit. Show the amount of any expense payment benefit that you provided during the year at item E.

    Example: Calculate expense payment fringe benefits

    An employer pays an employee's home telephone bills of $1,200 for the FBT year. The employee provides the employer with a declaration stating that 50% of the bills are for business purposes and are, as a result, otherwise deductible. The other 50% of the calls are private calls.

    The employer calculates the expense payment as follows:

    $1,200 x 50% = $600

    The employer shows this at item 23 as follows:

    Example of employer calculated expense at item 23

    End of example
    Last modified: 23 Oct 2013QC 27133