Fringe Benefits Tax

Fringe benefits tax (FBT)

If you provide any fringe benefits to your employees, you may need to register for Fringe Benefits Tax (FBT).

What is a fringe benefit?
Fringe benefit tax (FBT) is separate from income tax. FBT is tax you pay on certain benefits that you provide to your employees.

Who can receive a fringe benefit?
A fringe benefit is provided in respect of employment, which effectively means a benefit is provided to somebody who is an employee. If you are a sole trader, you are not an employee of the company, so FBT doesn't apply to you. It's only benefits you provide to your employees not to yourself.

Please follow the link below to watch a short video on Fringe benefits tax.

https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/

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