Fringe benefits tax (FBT) is a tax you pay on certain benefits you provide to an employee, including their family or other associates. It's separate from income tax and is calculated on the taxable value of the fringe benefit. This amount is then multiplied by the FBT rate.
There are several different types of fringe benefits that you can provide to your employee. Some more common examples include:
allowing an employee to use a work car for private purposes
paying an employee's gym membership
reimbursing an expense incurred by an employee, such as school fees
deductions for work related-travel expenses.
When providing fringe benefits to your employee, you'll need to self-assess your FBT liability for the FBT year (that is, 1 April to 31 March).
If you have an FBT liability, you must lodge an FBT return and pay the amount of FBT you owe for the FBT year. If you prepare your own FBT return, your lodgment and payment due date will be 23 May. If you use a tax agent, the due date may differ.
If you provide an employee certain fringe benefits exceeding $2,000 in an FBT year, you must report the grossed-up taxable value of those benefits, known as reportable fringe benefits, on their payment summary or through STP for the relevant financial year.