Fringe benefits tax

Fringe benefits tax (FBT) is a tax payable by employers who provide fringe benefits to their employees or to associates of their employees. This is the case whether or not the employer is the actual supplier of the benefit - for example, where the benefit is provided by an associate of the employer, or under an arrangement with a third party.

If your not-for-profit organisation provides a fringe benefit to its employees or to associates of its employees (typically family members) for the employee's employment, your organisation may have an FBT liability. This is separate from income tax and is calculated on the taxable value of the fringe benefits provided. Even if your organisation is exempt from income tax, it may still have to pay FBT. However, certain FBT concessions can reduce your organisation's liability.

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Last modified: 20 Jul 2015QC 16967