Fringe benefits tax


What’s a fringe benefit?

Any items you provide to your employees that are not part of their normal salary are considered fringe benefits. This includes things like:

  • allowing an employee to use a work car for private purposes
  • paying for employee’s private health insurance
  • providing entertainment through food, drink or recreation, or
  • giving employees cheap loans

More comprehensive examples for fringe benefits can be found on theATO website.

The FBT year runs from 1 April to 31 March.

Fringe benefits tax rates

The FBT rate changes for the year ending 31 March 2015 onwards.

  • FBT Year:  Ending Mar 2014 (and prior years) Rate: 46.5%
  • FBT Year: Ending 31 Mar 2015 FBT Rate: 47%
  • FBT Year: Ending 31 Mar 2016 & 31 Mar 2017 FBT Rate: 49%
  • FBT Year: Ending 31 Mar 2018 onwards FBT Rate: 47%

A full list of the FBT rates and thresholds can be found on the ATO website, including details on:

  • Car fringe benefits statutory formula rates
  • Deemed Depreciation Rates – Cars