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  • Are you providing fringe benefits?

    If you answer yes to any of the following questions, you may be providing a fringe benefit, and be liable for FBT:

    • Do you make cars or other vehicles owned or leased by the business available to employees for private use, including a car garaged at the employee’s place of residence?
    • Have you paid for, or reimbursed, a non-business expense incurred by an employee?
    • Do you provide your employees with entertainment by the way of food, drink or recreation?
    • Do you provide your employees with loans at reduced interest rates?
    • Have you released an employee from a debt?
    • Do you provide an employee with a house or other accommodation?
    • Do you provide your employees with board (meals and accommodation)?
    • Do you, as an airline or travel agent employer, provide your employees with free or discounted air travel on a standby basis?
    • Do you provide your employees with living-away-from-home allowances?
    • Have you, as a tax-exempt organisation, provided your employees with food, drink or accommodation?
    • Do you provide car parking for your employees within one kilometre of a commercial car parking station?
    • Have you provided your employees with property, either free or at a discount, or with goods at a lower price than they are normally sold to the public?
    • Do any of your employees have a salary package arrangement in place?
    • Do you provide your employees with other fringe benefits not covered above?

    If you are providing a fringe benefit, you need to:

    • calculate how much FBT you have to pay – you must self-assess your own FBT liability each FBT year
    • keep the necessary FBT records – the FBT law requires you to keep records relating to the fringe benefits you provide (the specific records required vary from one type of fringe benefit to another)
    • register for FBT – we recommend you register once you establish you have to pay FBT
    • report fringe benefits on your employees’ income statements or payment summaries and your FBT return, and pay FBT to us.
      Last modified: 10 Feb 2021QC 16948