If you provide certain benefits to your employees in addition to, or in place of, their salary or wages, you may have to pay fringe benefits tax (FBT).
FBT is separate from income tax. It is based on the taxable value of the benefit you provide. Benefits could include:
- use of a work car for private purposes
- a discounted loan
- reimbursing an expense, such as school fees or health insurance costs
- providing entertainment by way of food, drink or recreation.
Visit the ATO website for information on types of fringe benefits.
If you have to pay FBT, you must register for FBT and lodge an FBT return.
The FBT year runs from 1 April to 31 March. An FBT return must be lodged by 21 May each year.
If you're registered for FBT but do not need to lodge an FBT return for the year, complete a Notice of non-lodgment.
Last updated: 6 February 2025