Fringe Benefits Tax (FBT) is a tax imposed on the employer where they provide certain benefits to the employee or their associates. This can be for your home loan, entertainment, motor vehicles, transport, holidays etc. There are other types of payments that are exempt. The FBT year runs from 1 April to 31 March the following year.
Although fringe benefits are the responsibility of the employer, they can also end up costing the employee in relation to payments for child support, HELP, Centrelink, Medicare and private health insurance to name a few. Employees need to be aware that if the benefit is greater than the minimum reportable threshold, then the amount will be shown on your PAYG summary and will be added to your income for certain calculations.