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  • FBT exemptions for employers during emergencies

    With parts of Australia currently experiencing flooding, bushfires and other severe weather events, tax may be the last thing on your clients' minds. But it's reassuring to know that when your employer clients help their employees in an emergency situation, certain benefits provided are exempt from fringe benefits tax (FBT).

    This exemption applies when employers help employees affected by emergencies or similar events including:

    • natural disasters
    • accidents
    • serious illness
    • armed conflict
    • civil disturbances.

    Examples of benefits exempt from FBT include immediate relief the employer provides to an employee in the form of:

    • emergency meals or food supplies
    • clothing, accommodation, transport or use of household goods
    • temporary repairs, for example on the employee's home or car. Long-term benefits are not exempt from FBT, such as providing a new house or car to replace one destroyed in the emergency event.

    First aid or other emergency health care an employer provides their employee is also exempt if it is provided by an employee (or a related company employee), or is provided at your client's premises (or those of a related company), or at or near an employee's worksite.

    For example the FBT exemption for first aid and other emergency health care applies to emergency treatment by a company doctor at the site of the emergency or accident, but won't apply if an employer pays for an employee's ongoing medical or hospital bills.

    To discuss your own or your clients’ circumstances, you can phone our natural disaster hotline on 1800 700 724.

    See also:

    Last modified: 27 Feb 2019QC 58077