Business Accountants

24/7 Unlimited Business Accounting Support. Guaranteed

Call our free business helpline to get started.

FBT is a tax applied to certain benefits that employers provide to their employees or their employees’ associates (such as family members) in addition to their salary or wages. Employers are responsible for paying FBT on the benefits they offer employees.

Employers are required to pay FBT on the taxable value of fringe benefits, which is usually based on the cost of providing the benefit. The FBT rate is generally the same as the top marginal tax rate for individuals, which may change each year. The FBT year is 1 April – 31 March and at the time of publication the FBT rate is 47%.

Who receives fringe benefits?

FBT applies to your employees, their families or other associates.
When calculating FBT, an employee includes:

A current, future or past employee

A Company Director

Beneficiary of a trust who works in the business

If you are a sole trader, or a Partner in a Partnership you are not an employee of the business and FBT does not apply to you.

24/7 Tax, Bookkeeping and Payroll* support. Guaranteed.

We envisage a future where every small business can get the right support, at the right time, at the right price.

Calculating Fringe Benefit Tax

Employers are required to self-assess their amount of FBT based on grossing up the taxable value of the benefits you’ve provided. This is a notoriously complicated process and its best to get assistance from an accountant. Give Retinue a call to find out how we can help you.

Fringe Benefit Exemptions

Some items are exempt from fringe benefits tax if they are primarily used for work purposes. These include:

Portable electronic devices

Computer software

Protective clothing


Tools of trade

Certain additional fringe benefits may be excluded when calculating whether an employee’s fringe benefits amount if they meet the definition of minor benefits and have a notional taxable value of less than $300.



Fringe Benefit Tax (FBT) is a tax applied by the Australian government on certain non-cash benefits provided by employers to their employees or associates in connection with their employment.

Employers or entities providing fringe benefits to their employees or associates are generally required to pay FBT. This includes companies, partnerships, trusts, and non-profit organisations.

Fringe benefits include non-cash perks provided to employees or associates, such as company cars, health insurance, housing, low-interest loans, and other non-monetary benefits

  • Loans Accommodation Debt
  • Waivers
  • Real Estate Housing and Board
  • Parking
  • Meals
  • Various types of insurance
  • Food and drink
  • Mortgage payments
  • Taxi or rideshare travel
  • Tolls
  • Cars and related expenses
  • Childcare costs and school fees
  • Living-away-from-home allowances
  • Non-work Related goods and services
  • Entertainment and recreation

Not all fringe benefits are subject to FBT. Some exemptions and concessions apply, and certain benefits may be exempt if provided in specific circumstances. Common exemptions include work-related items, certain small business benefits, and specific employee contributions.

Employers report FBT on the Business Activity Statement (BAS) or an FBT return form. The Australian Taxation Office (ATO) provides detailed instructions and guidelines for reporting.

Non-compliance with FBT regulations may result in penalties and interest charges. Employers are encouraged to stay informed about FBT rules and seek professional support to ensure compliance.

GET A Quote