FBT is a tax that employers pay on benefits paid to an employee (or their associate, such as a family member) in addition to their salary or wages. FBT is calculated on the taxable value of the benefits you provide. This is separate to income tax.

Find out if you need to register for FBT

If you have to pay FBT, you must register for FBT with the Australian Taxation Office (ATO) and lodge an FBT return.

Register for FBT

You can learn how register for FBT on the ATO's website.

Register for FBT

To get the best workers for your business, you may want to attract them with certain benefits.

For example, you may give employees fringe benefits like:

  • a car for private purposes
  • goods at a discount
  • low interest loans
  • reimbursement for private expenses, such as school fees.

It's entirely legal to provide fringe benefits, but you must meet your FBT obligations.

If your business provides fringe benefits to your employees then you need to:

It's important to consider any FBT implications if you’re hosting a work event. Some Christmas parties for example can attract FBT. Consider:

  • if you are a tax-exempt organisation
  • how much the party costs
  • where and when the party is held
  • the value and type of any gifts you give at the Christmas party and who you give them to
  • whether you invite clients and other associates.

Generally, you won't pay FBT if you host a Christmas party for your current employees on your business premises on a work day and provide food and drink only, or keep the cost of the party below $300 per employee and certain conditions are met.

Find out if your party or function will attract FBT.

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