K – Property

You may provide a property fringe benefit when you provide an employee with property (for example, goods), either free or at a discount.


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

End of attention

Example: Calculate property fringe benefits

An electrical retailer provides a television that normally sells for $2,000, and an air conditioner that normally sells for $1,600, to an employee during the FBT year. The employee paid a total of $300 for these items and did not enter into a salary sacrifice arrangement to pay for the goods.

The value of the benefit is reduced to 75% of the selling price. Because these items are in-house property fringe benefits, and are not provided under a salary sacrifice arrangement, the taxable value is 75% of the normal selling price and the employer qualifies for the in-house concession of up to $1,000 per employee per year.

The retailer calculates the property fringe benefit as follows:

Gross taxable value is $2,700 (($2,000 + $1,600) x 75%)

Value of reduction is $1,000.

The electrical retailer would show this at item 23 as follows:

End of example
Last modified: 27 Mar 2015QC 44652