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  • H – Airline transport (airlines and travel agents only)

    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 relating to airline transport fringe benefits. Under these changes, there is no longer a separate category of fringe benefit for airline transport fringe benefits. Airline transport fringe benefits are now taxed under the in-house benefit provisions – that is, as expense payment, property or residual fringe benefits – and the way the taxable value is calculated has been changed.

    The changes affect airline transport fringe benefits provided on or after 7.30pm AEST on the 8 May 2012.

    For more information, refer to Reform of Airline transport fringe benefits.

    End of find out more

    Item H applies to some benefits you provide to airline and travel agent employees – where you provide free or discounted travel, subject to the stand-by restrictions that customarily apply to employees in the airline industry. If you do not provide the benefit subject to the stand-by restrictions, you value it as either an expense payment fringe benefit or a residual fringe benefit, depending on the circumstances.

    Example: Calculate airline transport fringe benefits

    A travel agent provides free air travel to an employee for their holidays during the FBT year – the value of this benefit was $2,500. Because the employer is a travel agent, they qualify for the 'in-house' concession of up to $1,000 per employee per year.

    The travel agent shows this at item 23 as follows:

    Example of travel agent entry at item 23

    End of example
    Last modified: 23 Oct 2013QC 27133