ATO Interpretative Decision
ATO ID 2004/301
Fringe Benefits Tax
Exempt benefits: Influenza (Flu) vaccinations & work-related preventative health careFOI status: may be released
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
If an employer provides an employee with a free flu vaccination, is this an exempt benefit under section 58M of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?
Decision
Yes. The provision of a free flu vaccination to an employee will be an exempt benefit under section 58M of the FBTAA.
Facts
Flu is a serious respiratory infection that can be spread easily from one person to another.
The employer has made free flu vaccinations available to all its employees although not all of the employees take up this offer.
The vaccinations have been administered by a nurse or doctor.
Reasons for Decision
Section 58M of the FBTAA exempts from FBT any 'work-related preventative health care' (WRPHC) of the employee. This term is defined in subsection 136(1) of the FBTAA to basically mean any form of care provided by, or on behalf of a medical professional to prevent work-related trauma provided it is not excluded from those employees:
- (a)
- who are likely to be at risk from similar work-related trauma
- (b)
- who work in close proximity to those employees who are suffering from the trauma, or
- (c)
- who perform similar duties to those employees who are suffering from the trauma.
'Work-related trauma' is defined in subsection 136(1) of the FBTAA to include the contraction of a disease that is related to the employment of the employee.
Because of the nature of flu, any member of the workforce is equally susceptible to contracting this disease and therefore it would qualify as 'work-related trauma'.
Although the employer's offer of free flu vaccinations was only taken up by some employees, as it was offered to all employees the requirements of the definition of WRPHC have been satisfied. On that basis, the benefit would be an exempt benefit under section 58M of the FBTAA.
Amendment History
| Date of Amendment | Part | Comment |
|---|---|---|
| 11 March 2026 | Business line | Updated to correct business line |
Year of income: 31 March 2005
Legislative References:
Fringe Benefits Tax Assessment Act 1986
section 58M
section 136
subsection 136(1)
ATO ID 2002/963
Keywords
Exempt benefits
FBT work-related preventative health care
FBT work-related trauma
Fringe benefits tax
Date reviewed: 27 February 2026
ISSN: 1445-2782