How do you pay fbt

Not working out the financial implications — FBT can be expensive, so work out if you'll be better off just offering higher salaries or regular bonuses instead. Rating form How helpful was this information? Additional comments. Related content More More. Read on.

How expenses can help reduce tax bills. Find out more. Basic tips for reducing your tax bill. Check out our guide. Our best tips, tools and visual guides to boost and test your knowledge and skills. Check it out. Dialog start. Search CommBank. Start typing…. Popular searches. Quick guide to fringe benefits tax FBT Fringe benefits can help you both enjoy some job perks, and, depending on your personal circumstances, reduce your taxable income.

What are fringe benefits? Related articles. Why do companies offer fringe benefits? How can fringe benefits reduce my tax? 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. 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. Register for FBT. Find out more. Fringe benefit tax FBT is a tax payable when the following benefits are supplied to the employees or shareholder-employees:. This is different to when you pay your employees. Where you pay cash to your employees, you treat the payment as part of the employee's salary or wage and make normal employee deductions, such as PAYE. If these benefits are enjoyed or received by employees as a result of their employment, they are liable for FBT.

This could be in a past, present or even future employment. Employers also pay FBT if the benefits are provided to or enjoyed by associates of the employees or shareholder employees.