Fringe Benefits Tax (FBT) in Australia – What It Covers, Who Pays It & How to Stay Compliant

Fringe Benefits Tax (FBT) is a tax paid by employers on certain non-cash benefits provided to employees or their associates (like family members). These benefits are provided in addition to salary or wages and are subject to FBT under Australian law.

FBT is calculated separately from income tax and is paid directly by the employer. At Ozobooks, we help you identify taxable benefits, calculate FBT correctly, and lodge returns with the Australian Taxation Office (ATO) on time.

Common Examples of Fringe Benefits

• Company car for private use
  
• Health insurance paid by employer
  
• Interest-free or low-interest loans
  
• Gym memberships
  
• School fees
  
• Meal entertainment
  

Who Pays FBT?

• The employer pays FBT, not the employee
  
• Applies to companies, partnerships, trusts, and sole traders with employees
  
• FBT applies even if the benefit is provided by a third party on your behalf
  

FBT Year and Lodgement

• FBT Year: 1 April to 31 March
  
• Lodgement Due Date: 21 May (if lodging yourself)
  
• Payment Due Date: 28 May (for electronic lodgement through a tax agent)
  

Exemptions & Reductions

Some benefits are exempt or receive concessional treatment, including:

• Minor benefits under $300
  
• Work-related portable devices (like phones, tablets)
  
• Relocation costs
  
• Certain travel expenses
  

Knowing what qualifies can reduce your FBT liability significantly.

How Ozobooks Helps

• Reviews all employee benefits for FBT exposure
  
• Applies exemptions and reductions where eligible
  
• Prepares and lodges FBT returns with the ATO
  
• Helps maintain records and logs (e.g. car logbooks)
  
• Ensures compliance and avoids penalties
  

FAQ:

Q1: Is FBT included in an employee’s PAYG withholding?
No. FBT is a separate employer obligation, not withheld from wages.

Q2: Do I need to pay FBT if I give employees bonuses?
No. Cash bonuses are considered salary, not fringe benefits.

Q3: Can I claim a tax deduction for FBT paid?
Yes. FBT paid is a deductible business expense.

Q4: How can I avoid FBT altogether?
You may reduce or avoid FBT by restructuring benefits as exempt items. Ozobooks can help with this.