Fringe Benefit Tax

3 min read

Currently, certain employers are capped on the amount of concessionally taxed fringe benefits they can provide to their employees, as follows:

  1. FBT-rebatable employers (e.g., certain societies, associations or clubs) are subject to a $30,000 cap on the amount of fringe benefits (which are eligible for an FBT rebate) they can provide to each of their employees.
  2. Public benevolent institutions and health promotion charities are subject to a $30,000 cap on the amount of FBT-exempt benefits they can provide to each of their employees.
  3. Public and non-profit hospitals, and ambulance services, are subject to a $17,000 cap on the amount of FBT-exempt benefits they can provide to each of their employees.

Certain benefits are currently excluded from these caps, such as the following: Meal entertainment-related benefits (e.g., restaurant meals); and EFLEs (e.g., holiday accommodation, and venue hire for a special event, such as a wedding).

Additionally, meal entertainment-related benefits and EFLEs are also currently excluded from the FBT payment summary reporting rules.

For employees who work for a not-for-profit employer:

  • a separate single grossed-up cap of $5,000 applies for salary packaged meal and other entertainment benefits for employees of not-for-profit organisations able to access a general FBT exemption or rebate
  • the amount of those benefits exceeding the separate grossed-up cap of $5,000 are included in calculating whether the value of all benefits you receive exceeds your general FBT exemption or rebate cap.

This means that you can receive such benefits worth between $2,329.59 and $2,549.98 (depending on whether your employer is entitled to GST credits) without exceeding the $5,000 cap.

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