A fringe benefit is a non-cash benefit (such as private use of a company car) that you provide to an employee because that person is an employee. Benefits can be provided by you, your associate or by a third party under an arrangement with you.
'Employee' can refer to a current, future or former employee. You must obtain all employee declarations no later than the day your FBT return is due to be lodged with us; or, if you don’t have to lodge a return, no later than 21 May.
You need to keep records that show:
- the taxable value of the fringe benefits
- where an associate has provided a fringe benefit
- if any exemptions or concessions apply.
If you or your associate provides fringe benefits to your employees, you need to keep special records and lodge a fringe benefits tax (FBT) return with us.