FBT is a tax imposed on certain non-cash benefits provided by employers to their employees or their employees’ associates. These benefits can include items such as company cars, low-interest loans, and gym memberships. The value of the benefit is taxed to the employer, not the employee, even though the employee receives the benefit.
FBT is calculated on the taxable value of the benefit provided, which is generally the cost to the employer of providing the benefit. The FBT rate changes each year, as per ATO policies, currently it is 47% (2022) of the taxable value of the benefit. FBT is separate from income tax, and it is in addition to it.
It’s important to note that not all benefits provided by employers are subject to FBT. For example, benefits that are considered ‘minor’ and infrequent are exempt from FBT.
FBT can be a complex area, and it is important for employers to understand their obligations and potential liabilities when providing benefits to their employees. At Amaze Accounting, our team of experienced accountants can assist you in understanding your FBT obligations and help you to ensure that you are compliant with all relevant laws and regulations. Contact us today to discuss your FBT needs
- Cars, car parking, and other transport benefits
- Entertainment and sporting facilities
- Housing and other accommodation
- Interest-free and low-interest loans
- Income protection insurance
- School fees
- Travel and accommodation