Residual fringe benefits
This information forms Chapter 18 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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18.1 What is a residual fringe benefit?
The term fringe benefit has a very broad meaning. It includes any right, privilege, service or facility provided in respect of employment.
Any fringe benefit that is not subject to the rules outlined in one of the preceding chapters of this guide is called a residual fringe benefit. Essentially, these are the fringe benefits that remain, or are left over, because they are not one of the more specific categories of fringe benefit.
A residual fringe benefit could include you (the employer) providing services such as travel or professional or manual work, or the use of property. It could also include providing insurance cover - for example, health insurance cover you take out for employees under a group policy.
Supply of goods integral to services
Generally, where a benefit consists of providing both goods and services, the goods component and the services component are valued separately. The goods component is valued as a property fringe benefit and the services component as a residual fringe benefit.
However, in certain circumstances the benefit is valued solely under the rules contained in this chapter. These circumstances are where you (or other provider) are in a business where goods and services are supplied together (for example, carrying out repairs that involve supplying spare parts) and the benefit is of that kind. Where such a benefit is treated as a residual fringe benefit, it is excluded from the property fringe benefit rules.