You may be eligible to claim a new FBT exemption
12 July 2021
Employers who provide training or education to redundant, or soon to be redundant, employees may now be exempt from fringe benefits tax (FBT).
You can check our website to see if you're eligible for the exemption and what this means for how you complete your returns.
Eligible employers can apply the exemption to retraining and reskilling benefits provided on or after 2 October 2021.
You don't need to include retraining and reskilling benefits that are exempt from FBT:
- in your FBT return
- as reportable fringe benefits in your employees Single Touch Payroll reporting or payment summaries.
If you've already lodged and paid your 2021 FBT return, simply amend it to reduce the FBT paid for retraining and reskilling that's exempt.
You must keep a record of all training and education provided to redundant, or soon to be redundant, employees if you intend to claim the exemption.
Remember, registered tax agents and BAS agents can help you with your tax.
Next step:
See also:
FBT exemption for employers who retrain or reskill employees facing redundancy.