Chartered Accountants

Fringe Benefits Tax

 

Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee in place of salary or wages.  Examples of benefits, which may attract FBT, include the provision of a motor vehicle, a low interest loan or payment of private expenses.

 
Are you providing fringe benefits?

The FBT year is 1 April to 31 March so it is timely to consider if you have provided a fringe benefit to your employees during the past 12 months.  If you answer yes to any of the following questions, you may have an FBT liability.

 

  • Do your employees take cars home and garage them overnight, even if only for security reasons?

  • Do you make a car or other vehicles owned or leased by the business available to employees for private use?

  • Do you provide loans at reduced interest rates to employees?  Or have you released any employees from a debt they owed?

  • Have you paid for or reimbursed a non-business expense incurred by an employee?

  • Do you provide employees with accommodation or non-specific travel allowances?

  • Do you provide entertainment by the way of food, drink or recreation to your employees?

  • Do any of your employees have a salary package arrangement in place?

  • Have you provided your employees with goods at a lower price than they are normally sold to the public?

 We suggest that you contact us if you answer yes to any of the above questions.

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