Fringe benefits tax is often a confusing area for employers. This schedule gives an overview of what this tax is and how can it apply to your business and staff.

1. Fringe Benefits Tax
Fringe Benefits Tax (FBT). We have compiled the following information to help
clarify Fringe Benefits Tax obligations for employers.
What is Fringe Benefit Tax?
FBT is an additional tax payable
by the employer. If you give your
staff anything other than a salary
(or superannuation) you could incur
fringe benefits tax.
What type of benefits attract
FBT?
Anything you provide to a staff
member other than their salary or
superannuation can attract FBT.
Typical examples include a car, a car
bay at work, housing, low interest
loans, entertainment (even with
clients or other staff), holidays, gifts,
food, alcohol, school fees, health
insurance, gym fees, and airfares.
If you let your staff garage the
company car at their house the car
will be taken as a private benefit.
A bus, truck, motorcycle or one
tonne van/ute is not a car but can
still attract FBT.
What type of staff incur FBT?
All staff can attract fringe benefits
tax. This includes the owners of
privately held businesses.
How do you calculate FBT?
If you provide the staff member with
$10,000 of benefit (like a necklace),
and you claim the GST on the
benefit, you will pay $9,600 in fringe
benefits tax.
If you can’t claim GST you will pay
$8,691 in FBT.
The FBT payable itself is tax
deductible (unlike income tax which
is not tax deductible).
When is the tax due?
The FBT year ends on 31 March. The
tax return is due 21 May.
Large FBT payers will make regular
instalments of FBT in their BAS.
Is there a threshold for small
benefits?
Infrequent and irregular
entertainment under $300 might be
exempt. Otherwise all benefits must
have a return lodged no matter how
small.
Small businesses have an exemption
for car parking.
How can I reduce FBT?
If your staff repay you in full for the
cost of the benefit provided you can
reduce the FBT. This is often done
for the owners of privately held
businesses.
If the benefit is one of the many
exempt benefits you can reduce
the cost as well. Remote housing
provided to a mineworker is an
example of an exempt benefit.
If the benefit is tax deductible it will
not attract FBT. It only applies to
private benefits.
There are special rules to calculate
the private use of a motor vehicle.

2. Craig Seddon
Director
D 08 9223 8871 M 0414 424 969
craig.seddon@westcourt.com.au
Level 1 45 Royal Street
East Perth WA 6004
T 08 9221 8811 F 08 9223 8832
westcourt.com.au
Fringe Benefits Tax
Ross Forrester
Principal
D 08 9223 8831 M 0412 570 692
ross.forrester@westcourt.com.au
DISCLAIMER The above information is not advice and is for general discussion purposes only. You should seek advice
from a registered tax agent in regards to your personal situation.
Westcourt is a mid-sized
practice of accountants
and business consultants,
centrally located in East
Perth. We specialise in
providing financial and
strategic advice to private
business. At Westcourt,
we take the time to get to
know our clients so that
we can recommend the
best solutions for their
business.
Our team has an in-depth
knowledge of the
accounting regulations,
financial strategies and
tax laws relating to private
business. This allows us
to provide our clients
with first-rate advice and
superior solutions.
Contact us today.
Anything else?
FBT and the value of the benefit
provided is part of your total wages
for payroll tax purposes ($750,000
WA wages threshold).
Some type of benefits have to be
shown on the employees PAYG
Withholding statement.
Where to from here?
If you have a liability you should
contact us to discuss your options.