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Expense payment fringe benefits

Check if you provide expense payment fringe benefits to your employees, and calculate the taxable value of the benefits.

Last updated 11 January 2023

What is an expense payment fringe benefit?

An expense payment fringe benefit may arise when an employee incurs an expense for their own benefit and you, as their employer:

  • reimburse them for the expense, or
  • directly pay a third party for the expense.

Expense payment fringe benefits only arise from expenses your employee incurs. Goods or services you provide to an employee, or pay for with your credit card, are not expense payment fringe benefits. In these cases the goods or services may be property or residual fringe benefits.

An expense payment fringe benefit may be for:

  • a business or private expense, or a combination of both
  • an expense incurred by the employee but not paid for by them
  • an expense incurred by an associate of the employee, such as their partner or relative.


You can register for an Employer: Expense payment fringe benefits sessionExternal Link. This webinar will help you work out if you are providing expense payment fringe benefits and what you need to do.

Common expense payment fringe benefits

Expense payment fringe benefits include the reimbursement or payment of:

  • car expenses, such as registration and insurance
  • car parking (if you do not provide the car parking facilities)
  • home mortgage expenses
  • cost of acquiring a home/desktop computer
  • home telephone and internet expenses
  • employee personal credit card payments
  • health insurance premiums
  • self-education expenses.

Exempt expense payment benefits

You don't pay FBT if the expense payment is for an exempt benefit, such as a minor benefit, portable electronic device, protective clothing or tools of trade.

Exempt benefits differ from reductions and concessions you may be able to apply to the taxable value of an expense payment fringe benefit. If the benefit is exempt, you don't need to calculate its taxable value.

What to do if you provide an expense payment fringe benefit

You need to:

  1. work out the taxable value of the expense payment fringe benefit
  2. calculate how much FBT to pay
  3. lodge your FBT return
  4. pay the FBT amount
  5. check if you should report the fringe benefit through Single Touch Payroll (or on your employee’s payment summary).

Taxable value of an expense payment fringe benefit

Generally, the taxable value of an expense payment fringe benefit is the amount you reimburse or pay.

For more information about the taxable value of common expense fringe benefits, see FBT guide: 9.9 Common expenses reimbursed or paid for by employers.

Reductions and concessions

The taxable value of an expense payment fringe benefit is reduced (or eliminated entirely) if: