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  • Reducing your FBT liability

    You can reduce the amount of FBT you pay by:

    • replacing fringe benefits with cash salary
    • providing benefits that your employees would be entitled to claim as an income tax deduction if they had paid for the benefits themselves (the ‘otherwise deductible’ rule)
    • providing benefits that are exempt from FBT
    • using employee contributions – generally a cash payment by the employee to the employer or the person who provided the benefit. However, an employee can also make an employee contribution towards a car fringe benefit by paying for some of the operating costs (such as fuel) that the employer does not reimburse.

    A range of FBT concessions are available to not-for-profit organisations.

      Last modified: 10 Feb 2021QC 16948