E – Expense payments | Australian Taxation Office

E – Expense payments
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

An expense payment fringe benefit may arise in either of two ways:
- where you (the employer) reimburse an employee for expenses they incur
- where you pay a third party in satisfaction of expenses incurred by an employee.
Example 14: Taxable value of expense payment fringe benefits

You operate a real estate business and pay an employee's home telephone bill of $1,200 for the year ending 31 March 2017. On 31 March 2017, your employee provides you with a declaration stating that 60% of the bills are for business purposes and are, as a result, otherwise deductible. The other 40% of the calls are private calls.

The calculation of the taxable value for the expense payment is:

$1,200 x 60% = $720. $720 is otherwise deductible.

$1,200 - $720 = $480 taxable value.

You would write at item 23:

End of example
Last modified: 22 Mar 2017QC 51524