Show download pdf controls
  • FBT retraining and reskilling exemption now law

    Employers who provide training or education to redundant, or soon to be redundant, employees may now be exempt from fringe benefits tax (FBT).

    Eligible employers can apply the exemption to retraining and reskilling benefits provided on or after 2 October 2020.

    There are no limits on the cost or number of training or education courses that employees may undertake.

    Retraining and reskilling benefits that are exempt from FBT don't need to be included in the FBT return, or an employee's reportable fringe benefits amount.

    If you've already lodged and paid you or you client's 2021 FBT return, you'll need to amend the return to reduce the FBT paid for any exempt retraining and reskilling benefits.

    Records of all training and education provided to redundant, or soon to be redundant, employees must be kept if you or your clients intend on claiming the exemption.

    You can check if you or your clients are eligible for the exemption by visiting Retraining and reskilling exemption.

    See also:

    Last modified: 19 Jul 2021QC 66434