|
|
To understand how fringe benefits work you need to know ...
- What is FBT? An FBT is a tax that is paid on some benefits employers provide to their employees and associates (which can be family members). It is additional to income tax and is based on the taxable value of the benefits provided. The FBT year runs from 1 April to 31 March.
- What is a fringe benefit? Some typical benefits include allowing an employee to use a work car for private purposes, give an employee a cheap loan or pay an employee’s private health insurance.
- Not fringe benefits:
- salary and wages
- shares acquired under approved employee share schemes
- employer contributions to complying superannuation funds
- eligible termination payments
- some benefits provided by religious institutions to their religious practitioners
- Who pays? Employers have to pay even if the benefit is provided by and associate or by a third party under an agreement.
- Need more info? Call Taggarts on 4962 202
|