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  • FBT – home phone and internet expenses

    As a not-for-profit you may reimburse your employees or pay a third party for home phone and internet costs, which may result in an expense payment fringe benefit.

    It's important to be aware of how to work out the taxable value of these fringe benefits, and the evidence you need to support it.

    This depends on the:

    • amount you reimburse your employee or pay a third party, and
    • % of business use employees would otherwise be entitled to claim as an income tax deduction.

    There are also different record keeping requirements depending on the amount you pay or reimburse your employee for home phone or internet costs during the FBT year. Where the payment or reimbursement of home phone or internet costs:

    • is up to $50
      • limited documentation needs to be retained by your employee - you should be able to explain the connection between their employment and the expenses incurred
      • your employee will need to provide a declaration to you detailing the percentage of business use
       
    • exceeds $50
      • you and your employee must keep records of the actual expenses
      • your employee will need to provide a declaration to you detailing the percentage of business use and the purpose of incurring the expense.
       

    See also:

    Last modified: 30 Jul 2019QC 59788