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E – Expense payments

Last updated 15 May 2014

If you pay for or reimburse an expense an employee incurred, you may be providing an expense payment fringe benefit. Show the amount of any expense payment benefit that you provided during the year at item E.


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Reform of salary sacrificed 'in-house' fringe benefits 

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Changes have been made to the FBT law to remove the concessional treatment of in-house expense payment fringe benefits provided under a salary packaging arrangement entered into on or after 22 October 2012. Transitional rules apply where an existing salary packaging arrangement was entered into before 22 October 2012.


Start of example

Example: Calculate expense payment fringe benefits

An employer pays an employee's home telephone bills of $1,200 for the FBT year. The employee provides the employer with a declaration stating that 50% of the bills are for business purposes and are, as a result, otherwise deductible. The other 50% of the calls are private calls.

The employer calculates the expense payment as follows:

$1,200 x 50% = $600

The employer shows this at item 23 as follows:


End of example