Fbt how does it work

Your employer pays for the lease on your chosen car and maintenance costs out of your salary through a combination of pre-tax and post-tax salary deductions. Want to talk? Enquire now. No matter what group your employer falls into, you can package extra payments to your superannuation over and above your compulsory contributions. These extra contributions are made in pre-tax dollars, which helps to reduce your taxable income.

As an employer, FBT can sometimes be a big headache. Applied Education makes no representation or warranty concerning the contents hereof and specifically disclaims any implied warranties of fitness or any particular purpose.

Applied Education disclaims any liability for any direct, indirect, incidental, consequential, special, or exemplary damages resulting from the use of the information in this document or from the use of any products described in this document. Mention of the product does not constitute an endorsement of that product by Applied Education. Data used in examples and sample data files are intended to be fictional. Any resemblance to real persons or companies is entirely coincidental.

Skip to primary navigation Skip to main content. Example calculation of Fringe Benefits Tax 1. Income Tax Consequences of Providing Fringe Benefits As a general rule, the cost incurred in providing a fringe benefit is an allowable income tax deduction and An employee contribution is assessable income of the employer however, it is not an allowable deduction for the employee.

We acknowledge the traditional owners of the country throughout Australia and their continuing connection to land, sea and community. We pay our respect to them and their cultures and to the elders past and present. Toggle navigation. Register for fringe benefits tax FBT. Register for fringe benefits tax FBT Last Updated: 20 January Fringe benefits are an important part of business and can be a useful way to attract quality staff. If you're going to provide fringe benefits to your staff, make sure you understand your taxation obligations.

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. Your employer pays fringe benefits tax on any fringe benefits they offer you.

A fringe benefit is something extra you get from your employer, in addition to your wage or salary or in return for foregoing some of your salary under a salary sacrifice arrangement. It's generally not actual salary, wages or cash, and the benefit can be something for you, your spouse or your children. Fringe benefits can help employers attract, retain and motivate employees. Employers are becoming increasingly competitive with what they offer their employees — and fringe benefits are one way they can gain a competitive edge.

Perks like free food, coffee bars, discounted gym memberships and entertainment can make employees feel valued and create a happier workplace. Not all of these perks attract FBT, but some of them do.

Often, fringe benefits are offered to you through salary sacrifice as part of a salary packaging arrangement. Items you need to do your job — e.