Fringe benefits tax for small business

Fringe benefits tax (FBT) is paid by employers on certain benefits they provide to their employees or their employees’ associates (typically family members) in respect of their employee's employment.

FBT is separate from income tax and is based on the taxable value of the fringe benefits provided.

Employers can generally claim an income tax deduction for the cost of providing fringe benefits and for the FBT they pay.

A fringe benefit is a benefit provided to an employee (or their associate) because that person is an employee (or a former or future employee). Benefits can be provided by an employer, an associate of the employer or a third party under an arrangement with the employer.

    Last modified: 23 Jun 2016QC 16948