The foreign exchange rate may impact on the amount of the expense payment fringe benefit. When reimbursing a payment made by an employee, entities should reimburse the amount actually paid by the employee. For example, an employee incurs expenditure of US$10 paid on an Australian credit card. The charge shown on the credit card statement is A$15. The employer should reimburse the employee A$15, being the amount incurred by the employee.
Where an employee has a foreign currency bank account, entities may choose to make payments into this bank account. In this situation, the exchange rate will be determined at the time of the payment. The amount of the expense payment fringe benefit will be the Australian dollar amount paid to reimburse the employee for the foreign currency amount paid.