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  • About fringe benefits

    You need to work out whether you are providing any fringe benefits to your employees or their associates (typically family members).

    Employees can be:

    • current, former or future employees
    • directors that conduct their business through a company or a trust.

    A fringe benefit can also be provided by an associate or a third party under an arrangement with you. For example, you may deal with a supplier who, in turn, provides free goods to your employees.

    Associates include people and entities closely associated with employers or employees, such as relatives or closely connected companies or trusts.

    Some employers may need to work out the status of their workers, as benefits provided to volunteers and contractors don’t attract FBT. To help determine the status of your workers, you can use the Employee/contractor decision tool.

    What is a fringe benefit

    'Benefit' is broadly defined and includes any rights, privileges or services. Some examples of when an employer provides a fringe benefit are when they:

    • allow their employee to use a work car for private purposes
    • give their employee a cheap loan
    • reimburse a non-business expense incurred by their employee (such as school fees or private health insurance)
    • provide entertainment by way of food, drink or recreation.
      Last modified: 10 Feb 2021QC 16948