Fringe Benefit Tax
Fringe benefit tax (FBT) is a tax on benefits that employees receive as a result of their employment, including those benefits provided through someone other than an employer. Examples include motor vehicles, low-interest loans, free, subsidised or discounted goods and services, employer contributions to funds, insurance and superannuation schemes and other benefits.
In your fringe benefit tax (FBT) return, you will need to show the taxable value of benefits provided in each of four categories and the amount of FBT payable. All employers and businesses that provide fringe benefits must file regular FBT returns.
The four categories are:
- Motor vehicles
- Low interest loans
- Subsidised or discounted goods, services and/or transport, and
- Employer contributions
You have certain choices in the calculation of FBT comprising three methods:
- Multi-rate, or
- Short form multi-rate