• Loan fringe benefits

    A payment may be classified as a loan if it meets the definition of a loan, even if the parties do not enter into a formal loan agreement. A loan includes any advance of money, the provision of credit or the payment of an amount where there is an obligation to repay. The following payment types may be classified as loan fringe benefits:

    • overpaid salaries that are to be repaid over a number of periods
    • FBT contributions owed by an employee who was salary packaging that are repaid in post-tax dollars over a number of periods (for example, in the event that an employee has ceased employment prior to the discrepancy being identified)
    • a repayable outlay allowance/advance
    • a loan for a security deposit/bond
    • loans to employees to purchase housing in a remote area.
      Last modified: 17 Jul 2012QC 21998