Reductions in fringe benefit taxable value


This information forms Chapter 19 of Fringe benefits tax – a guide for employers.

Remember, a fringe benefit may be provided by another person on behalf of an employer. It may also be provided to another person on behalf of an employee - for example, a relative.

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19.1 When the value can be reduced

A number of fringe benefits attract concessional treatment. The concession is a reduction in the taxable value of the fringe benefit that results in a reduced amount of fringe benefits tax (FBT), or even no FBT, being payable.

The taxable value of a fringe benefit is calculated in accordance with valuation rules. Where the 'otherwise deductible' rule applies, the taxable value is then reduced.

If the fringe benefit is of a type that attracts any of the concessions listed in this chapter, you (the employer) may reduce the taxable value further. In some instances there may be special conditions that must be satisfied before the concession applies – for example, keeping certain records.

Some of the explanations given in this chapter are necessarily brief. For more on each concession refer to the relevant section of the Fringe Benefits Tax Assessment Act 1986 (FBTAA), a link to which is provided at each concession.

    Last modified: 25 Jan 2016QC 17819