• Calculating taxable value of property fringe benefits

    The taxable value of property fringe benefits provided to an employee of an Australian Government entity will generally be equal to the market value of the property reduced by any contribution made by the employee.

    Further Information

    For details of the alternative valuation rules, refer to Property fringe benefits.

    End of further information

    Property fringe benefits may include gifts provided to employees by a third party under an arrangement with the Australian Government employer. Gifts provided by another Australian Government entity will generally be considered to have been provided by an associate and will be required to be included in the employer's FBT return.

    Valuing such benefits may require the third party to provide details of the value of the gift, or the retail price of a comparable item to be sourced.

    One practise adopted by entities whose employees often receive gifts is to maintain a 'gift register'. A gift register could take the form of an entity-wide database that records the details of all gifts received, along with an estimated value (obtained from the entity that gave the item or from another source).

    A review of gift register entries should be performed each year, focussing particularly on the value assigned to the gifts. Employees should be advised that the register will be reviewed to determine whether gifts are being properly disclosed and valued.

      Last modified: 17 Jul 2012QC 21998