Fringe Benefits Tax (FBT) Explained

by Jan 13, 2020INFORMATION

FBT also know as fringe benefits tax is the manner in which employees contracted by the respective employer get to avail certain benefits, monitory and otherwise from an employer during their tenure of service with the employer.

Check Pricing

FBT is also applicable if the benefit is passed on by a third-party based on the agreement between the third-party and the employer.

Based on the requirement, an employee may include a current serving individual, a future or a past employee, including the beneficiary who works in the favour of the business or the mentioned firm.

Most commonly utilised fringe benefits include:

  • Offering discounted loans to employees
  • Sponsoring health gym memberships for the employee
  • Permitting employees to use a work vehicle for personal engagements
  • Entertainment allowances for the employees
  • Reimbursing certain type of expenses made by the employee like education fee

What’s excluded from FBT:

  • Employee wages
  • Company shares purchased under share acquisition schemes
  • Contributions pertaining to the super funds
  • Employment termination payments
  • Payments of amounts under Divison 7A cited dividends

FBT is different as compared to the income tax and is calculated on the taxed value of the fringe benefit.

Types of FBT include:

  • Car fringe benefits
  • Car parking fringe benefits
  • Entertainment related fringe benefits
  • Expense payment fringe benefits
  • Debt waiver fringe benefits
  • Loan fringe benefits
  • Housing fringe benefits
  • Board fringe benefits
  • Living away from home allowance fringe benefits
  • Property fringe benefits
  • Residual fringe benefits

What’s in for the Employers?

Employers that actively provide fringe tax benefits to their employees can claim an income tax benefit detection for it. Also, the said firm or business can claim GST credits for the things offered as fringe benefits.

How Employers can reduce their FBT liability?

Employers or businesses can reduce their FBT liability by:

  • Offering employees benefits that are exempt from FBT
  • Providing cash bonuses to employees
  • Offering benefits to employees that are income tax-deductible
  • Utilising employee contributions

Reporting and FBT payments

Generally, employers have to lodge FBT returns if they have a liability during the said year. The due date is generally announced well ahead of time. Also, employers or businesses that have registered for FBT but don’t have to lodge for FBT returns for the given year tend to apply for a notice of non-lodgement under FBT system.

Want to find the best GPS tracking solution for your business?

Every business is unique, and your GPS fleet management requirement can be different compared to the shop owner across the street. Talk to a fleet management expert today to know your options. We will help you find the exact type of GPS tracking solution for your unique needs. We have GPS trackers to suit all budgets and requirements.


Check PricingGet a Live Demo
Fleet Vehicle Maintenance

Quintessential Ways To Keep Fleet Vehicles Running Efficiently

A stitch in time saves nine happens to be a philosophy that if taken seriously saves the person or a business for that matter all the hassle in the world. Timely intervention and prevention is a practice that is implemented and celebrated across industries with high...
fleet vehicle theft

How To Secure Your Fleet Vehicles Against Theft

A stolen fleet vehicle is more damaging to the fleet business than a simple monetary loss. Apart from the loss of vehicle, there are obvious damages to the business's bottom line, loss of operational hours and prolonged delays in the pipelines during the recovery of...
Home Delivery

Ways To Set Up A Business For Home Deliveries

With the pandemic impacting lives and businesses worldwide, the governments across the globe have encouraged the ideology of social distancing through following norms like getting essentials delivered to the doorstep of households among others. However, easier said...
fleet manager

7 Benchmarks That Fleet Managers Should Abide By!

Fleet managers in any cooperation, be it big or small are always on their toes, pruning through pressure to get the fleet vehicles running smoothly. However, among all the pivotal responsibilities that a fleet manager dons, tracking fleet metrics is most important...
Fleet Manager

Planning To Operate Your Business Remotely?

The Stimulus Package Has Arrived & The Time To Make The Switch Is NOW!Check PricingThe Australian federal government has announced COVID-19 economic rescue package that will be churned out to lend support to...
Fleet Management FAQs

FAQs On Fleet Management

Fleet Management for end-users can be a tough terrain to navigate. We at Linxio have put together helpful insights around some of the most commonly asked questions around fleet management.Check Pricing1. What is GPS...
Fleet Management Software For Small Business Fleets

Fleet Management Software For Small Business Fleets

Fleet management software allows fleet managers to track all fleet vehicles from a unified platform. Small business fleets always find it hard to run their vehicles at the utmost efficiency due to challenges like budgeting restraints and lack of solutions that can...
Driver Management

Driver Management System For Aggressive Driving

An angry driver is an angry driver. There are no two ways about it. Aggressive driving causes fatalities and accidents every year across the globe. Being a leading cause of injuries, it’s on the rise with an increasing number of transportation users and commuters...
GPS Tracking

GPS Tracking Explained

What Is GPS Tracking? GPS Tracking is the method of tracking the location or whereabouts of an asset which may include a vehicle, a person or a piece of equipment. In it’s the purest form, an asset to be tracked is fitted with a tracker device that is accompanied by a...
Vehicle Tracking System

Emerging Trends Of Fleet Management In 2020

With the dawn of a brand new year 2020, fleet management as an industry vertical is about to be introduced to significant changes that will revolutionise how fleet businesses conduct operations and facilitate everyday tasks for fleet vehicle management and...