Fringe benefits tax (FBT) is a tax emplyers pay on certain benefits they provide to their employees, including the employee's family or other associates. The benefit may be in addition to, or part of, their salary or wages package (taken from ATO website). THE FBT year runs from 1 April to 31 March (different from the June financial year).
Some examples of FBT include:
- Providing a car for work or private use
- Employer providing a discounted loan
- Reimbursing expenses incurred by the employee
- Providing payment for entertainment, food or recreation.