17.9 Exempt property benefits

Payments to worker entitlement funds

Property fringe benefits arising from contributions you make to worker entitlement funds are exempt from FBT, provided the conditions in section 20.6 of Fringe benefits tax exempt benefits are met.

Property provided and consumed on employer's premises

Property you provide to an employee is an exempt benefit if the property is both provided and consumed on your premises on a working day (if you are a company, the premises may be those of a related company). For example, there is no FBT on bread given to bakery employees for consumption at work.

This exemption does not apply to:

  • employers that are exempt from income tax where entertainment arises as a result of providing the property benefit (refer to Tax-exempt body entertainment fringe benefits)
  • employers who choose to use the meal entertainment provision and calculate the taxable value under the 50:50 split method or the 12-week register method (refer to Fringe benefits tax and entertainment)
  • meals provided under a salary sacrifice arrangement.

Remote area - certain meals provided to employees in primary production

Property benefits arising from providing non-entertainment meals to an employee employed in a primary production business located in a remote area are exempt benefits (refer to section 20.7 of Fringe benefits tax exempt benefits).

    Last modified: 02 Jun 2014QC 17815