As an employer, if you provide certain benefits to your employees in addition to, or in place of, their salary or wages, you need to register for fringe benefits tax (FBT).
FBT is separate from income tax and is based on the taxable value of the benefits you provide. Such benefits could include:
- allowing your employee to use a work car for private purposes
- giving your employee a cheap loan, or access to a corporate box
- reimbursing an expense incurred by your employee, such as school fees
- providing entertainment by way of food, drink or recreation.
The FBT year runs from 1 April to 31 March.
You can register for FBT:
- online through the Australian Government Business Registration Service (you'll need to have an ABN)
- through your registered tax agent
- by calling 13 28 66 (if you're an authorised contact for the business)
- by lodging your annual FBT return.
FBT can apply to all employers, including:
- sole traders
- unincorporated associations
- government bodies.
If you're unsure whether the benefit you provide is in respect of employment, ask yourself if you'd still provide it, if the recipient weren't your employee, or an associate of your employee.
Things to keep in mind...
- The FBT year runs from 1 April to 31 March, and an FBT return must be lodged by 21 May each year.
- You need to pay FBT even if the benefit you provide is to an associate of your employee, or is provided by a third party under an arrangement with you.
- If you're already registered for FBT but don’t need to lodge an FBT return for the year, complete a Notice of non-lodgment - PDF.