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E – Expense payments

Last updated 26 March 2015

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.


The transitional rules that applied to in-house expense payment fringe benefits provided under a salary packaging arrangement entered into before 22 October 2012 ceased to apply from 1 April 2014.

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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