How To Calculate Fbt Example

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Comprehensive Guide: How to Calculate FBT (Fringe Benefits Tax) with Examples

Fringe Benefits Tax (FBT) is a tax employers pay on certain benefits they provide to their employees, including their employees’ family or other associates. The benefit may be in addition to, or part of, their salary or wages package.

Understanding how to calculate FBT is crucial for businesses to ensure compliance with tax obligations and to make informed decisions about employee remuneration packages. This guide will walk you through the FBT calculation process with practical examples.

What is Fringe Benefits Tax (FBT)?

FBT is separate from income tax and is calculated on the taxable value of the fringe benefit provided. The Australian Taxation Office (ATO) administers FBT, which applies to most employers including:

• Companies
• Partnerships
• Government bodies
• Not-for-profit organizations
• Sole traders (in some cases)

Types of Fringe Benefits

There are 13 categories of fringe benefits as defined by the ATO. The most common types include:

1. Car fringe benefits – When an employer provides a car for private use
2. Loan fringe benefits – When an employer provides a loan at low or no interest
3. Expense payment fringe benefits – When an employer pays or reimburses an employee’s private expenses
4. Property fringe benefits – When an employer provides property (other than cash) for free or at a discount
5. Residual fringe benefits – Any benefit not covered by the other categories

Key Components of FBT Calculation

To calculate FBT, you need to understand these key components:

1. Taxable Value

The taxable value is the value of the benefit provided to the employee. The method for calculating this varies depending on the type of benefit:

• Car benefits: Typically calculated using either the statutory formula method or the operating cost method
• Loan benefits: The difference between the official interest rate and the actual interest charged
• Expense payments: The amount of the expense paid or reimbursed

2. Gross-Up Factor

The gross-up factor accounts for the tax that would have been paid if the employee had received the benefit as salary. There are two types:

• Type 1 gross-up: Used when the employer is entitled to a GST credit for the benefit (2.0802 for 2023-24)
• Type 2 gross-up: Used when the employer is not entitled to a GST credit (1.8868 for 2023-24)

3. FBT Rate

The current FBT rate is 47% (as of 2023-24 tax year). This rate is applied to the grossed-up taxable value to calculate the FBT payable.

4. Employee Contributions

Any contributions made by the employee toward the cost of the benefit can reduce the taxable value.

Step-by-Step FBT Calculation Process

Follow these steps to calculate FBT:

1. Determine the taxable value of the fringe benefit using the appropriate valuation method for the benefit type
2. Apply the gross-up factor to the taxable value (either Type 1 or Type 2)
3. Subtract any employee contributions that are eligible to reduce the taxable value
4. Multiply the grossed-up value by the FBT rate (47%) to get the FBT amount payable
5. Calculate the reportable fringe benefits amount for inclusion on the employee’s payment summary

Practical FBT Calculation Examples

Example 1: Car Fringe Benefit (Statutory Formula Method)

Scenario: An employer provides an employee with a car for private use. The car’s cost price is $40,000. The car was available for private use for 200 days during the FBT year, and the employee traveled 10,000 km for work purposes.

Calculation:

1. Statutory fraction = (0.20 × 200) / 365 = 0.11
2. Taxable value = $40,000 × 0.11 × (100% – 20% work-related use) = $3,520
3. Grossed-up value (Type 1) = $3,520 × 2.0802 = $7,322.30
4. FBT payable = $7,322.30 × 47% = $3,441.48

Example 2: Loan Fringe Benefit

Scenario: An employer provides an employee with a $50,000 loan at 2% interest when the benchmark interest rate is 5.25%. The loan was outstanding for the entire FBT year.

Calculation:

1. Taxable value = $50,000 × (5.25% – 2%) = $1,625
2. Grossed-up value (Type 1) = $1,625 × 2.0802 = $3,378.33
3. FBT payable = $3,378.33 × 47% = $1,587.82

Example 3: Expense Payment Fringe Benefit

Scenario: An employer reimburses an employee $3,000 for private school fees. The employer is entitled to a GST credit for the payment.

Calculation:

1. Taxable value = $3,000 (full amount as it’s a private expense)
2. Grossed-up value (Type 1) = $3,000 × 2.0802 = $6,240.60
3. FBT payable = $6,240.60 × 47% = $2,932.88

FBT Reporting and Payment

Employers must:

• Lodge an FBT return by 21 May each year (if lodging yourself) or by the due date provided by your tax agent
• Pay any FBT liability by 28 May (or 25 June if lodging through a tax agent)
• Report the grossed-up taxable value of certain benefits on employees’ payment summaries (now called income statements)

FBT Exemptions and Concessions

Some benefits are exempt from FBT or receive concessional treatment:

• Work-related items: Portable electronic devices, computer software, protective clothing
• Minor benefits: Less than $300 in value and provided infrequently
• Not-for-profit organizations: May be eligible for concessions or exemptions
• Remote area benefits: Certain benefits provided to employees in remote areas

Common FBT Mistakes to Avoid

Avoid these common errors when dealing with FBT:

1. Incorrectly classifying benefits (e.g., treating a car benefit as an expense payment)
2. Using the wrong gross-up rate (Type 1 vs. Type 2)
3. Failing to account for employee contributions that reduce the taxable value
4. Not keeping proper records to substantiate benefit valuations
5. Missing deadlines for lodgment and payment

FBT vs. Income Tax: Key Differences

Aspect	Fringe Benefits Tax (FBT)	Income Tax
Who pays	Employer	Employee (PAYG) or Individual
What’s taxed	Value of benefits provided	Income earned
Tax rate	47% (2023-24)	Progressive rates (0% to 45%)
Reporting period	1 April – 31 March	1 July – 30 June
Deductions	No deductions for employer	Various deductions available

FBT Rates Over Time

FBT Year	FBT Rate	Type 1 Gross-Up Rate	Type 2 Gross-Up Rate
2023-24	47%	2.0802	1.8868
2022-23	47%	2.0802	1.8868
2021-22	47%	2.0802	1.8868
2020-21	47%	2.0802	1.8868
2019-20	47%	2.0802	1.8868

Strategies to Minimize FBT

Businesses can legally reduce their FBT liability through these strategies:

• Provide exempt benefits: Focus on benefits that are FBT-exempt like work-related items
• Use employee contributions: Have employees contribute to the cost of benefits to reduce the taxable value
• Replace benefits with cash salary: Sometimes paying additional salary may be more tax-effective
• Use salary packaging: Structure remuneration packages to maximize tax effectiveness
• Provide benefits that qualify for concessions: Such as those available to not-for-profit organizations

Record-Keeping Requirements for FBT

Proper record-keeping is essential for FBT compliance. Employers must keep records that:

• Substantiate the taxable value of benefits provided
• Show how calculations were performed
• Demonstrate that any exemptions or concessions apply
• Support employee contribution claims

Records must be kept for at least 5 years after the FBT return is lodged.

Official ATO Resources

The Australian Taxation Office provides comprehensive guidance on FBT calculations and obligations:

ATO Fringe Benefits Tax Information Fringe Benefits Tax Assessment Act 1986

Academic Research on FBT

The University of New South Wales Taxation & Business Law department has published research on FBT policy and its economic impacts:

UNSW Taxation Research

FBT and Salary Packaging

Salary packaging (or salary sacrificing) is an arrangement where an employee agrees to receive less salary in return for benefits. This can be tax-effective for both employers and employees when structured correctly.

Common salary packaged items include:

• Cars (through novated leases)
• Superannuation contributions
• Laptop computers and portable electronic devices
• Child care fees
• Airline lounge memberships

When considering salary packaging arrangements, it’s important to:

1. Calculate the FBT implications for the employer
2. Assess the income tax implications for the employee
3. Consider the administrative costs of providing the benefit
4. Ensure the arrangement complies with all tax laws

FBT for Small Businesses

Small businesses often find FBT particularly challenging due to limited resources. Key considerations for small businesses:

• Simplified record-keeping: The ATO offers some concessions for small businesses
• Common benefits: Car benefits and expense payments are most common
• Cash flow impact: FBT is payable annually, which can affect cash flow
• Outsourcing: Many small businesses use accountants or FBT specialists

FBT and Electric Vehicles

Recent changes to FBT rules for electric vehicles (EVs) have made them more attractive for employers and employees:

• From 1 July 2022, eligible electric cars are exempt from FBT if they meet certain criteria
• The exemption applies to battery electric vehicles, hydrogen fuel cell electric vehicles, and plug-in hybrid electric vehicles
• The vehicle must be first held and used on or after 1 July 2022
• The luxury car tax threshold doesn’t apply for the FBT exemption

This exemption can provide significant savings. For example, providing an electric vehicle worth $80,000 would normally attract FBT of approximately $15,000-$20,000 per year, but under the exemption, no FBT is payable.

FBT and Remote Work Arrangements

The increase in remote work has raised questions about FBT implications:

• Home office equipment: Generally FBT-exempt if primarily for work use
• Internet and phone expenses: May be exempt if work-related
• Home office allowances: May be exempt up to certain limits
• Work-from-home stipends: Need to be carefully structured to avoid FBT

FBT Compliance and Audits

The ATO actively monitors FBT compliance through:

• Data matching with other government agencies
• Random audits of employers
• Review of FBT returns that appear unusual
• Follow-up on tips from employees or competitors

Penalties for non-compliance can include:

• Additional tax assessments
• Interest charges on unpaid FBT
• Administrative penalties (up to 75% of the tax shortfall)
• Prosecution for serious cases of fraud or evasion

FBT and Not-for-Profit Organizations

Not-for-profit (NFP) organizations often receive concessional FBT treatment:

• Capping threshold: The first $30,000 of grossed-up taxable value for certain benefits may be FBT-free
• Rebate: NFPs may be eligible for a rebate of up to 47% of the FBT payable
• Exempt benefits: Some benefits provided by NFPs are exempt from FBT

To qualify for these concessions, NFPs must be:

• Registered charities
• Public benevolent institutions
• Health promotion charities
• Certain other types of NFPs as defined by the ATO

Future of FBT

The FBT system is periodically reviewed and may change in response to:

• Economic conditions
• Government revenue needs
• Changes in work practices (e.g., remote work)
• Environmental policies (e.g., electric vehicle incentives)
• International tax trends

Recent discussions have focused on:

• Simplifying FBT compliance for small businesses
• Expanding exemptions for environmentally friendly benefits
• Adjusting gross-up rates to reflect current economic conditions
• Better alignment with income tax rules

FBT Calculation Tools and Software

Many tools can help with FBT calculations:

• ATO calculators: Basic calculators for common benefit types
• Accounting software: Xero, MYOB, and QuickBooks have FBT modules
• Specialist FBT software: More advanced tools for complex situations
• Tax agent services: Many accountants offer FBT calculation services

When choosing a tool, consider:

• The types of benefits you provide
• The complexity of your FBT situation
• Integration with your existing systems
• Cost vs. time savings

FBT and International Assignments

FBT becomes more complex when dealing with international assignments:

• Double taxation: Benefits may be taxed in both countries
• Tax equalization: Employers often cover the tax costs
• Social security: May affect FBT calculations
• Exchange rates: Need to be considered for benefit valuations

Many countries have tax treaties with Australia that affect how FBT is applied to international assignments.

FBT and Contractors

FBT generally doesn’t apply to benefits provided to independent contractors. However:

• If a contractor is actually an employee under common law, FBT may apply
• The ATO looks at the totality of the relationship, not just the contract
• Some benefits provided to contractors may be deductible business expenses

FBT and Entertainment Benefits

Entertainment benefits are a common FBT issue:

• Meals and drinks: Generally taxable unless specific exemptions apply
• Recreational activities: Usually taxable benefits
• Client entertainment: May be deductible but still subject to FBT if provided to employees
• Christmas parties: Have specific rules about when FBT applies

The “otherwise deductible” rule can sometimes reduce the taxable value of entertainment benefits if the employee would have been able to claim a deduction for the expense.

FBT and Living-Away-From-Home Allowances

Living-away-from-home allowances (LAFHA) have special FBT rules:

• First 12 months at a work location may qualify for concessional treatment
• Must be for temporary work assignments
• Substantiation requirements apply
• Reasonable food and accommodation amounts are set by the ATO annually

For the 2023-24 FBT year, the reasonable amounts are:

• $286 per week for food (for one adult)
• Actual accommodation costs (with substantiation)

FBT and Employee Share Schemes

Employee share schemes can have FBT implications:

• Discounted shares provided to employees may be taxable benefits
• Deferred taxing points can affect when FBT applies
• Startup companies may qualify for concessions
• Complex valuation rules apply to unlisted shares

The tax treatment depends on whether the shares are:

• Taxed upfront
• Taxed at a deferred time
• Subject to the startup concession

FBT and Superannuation

Superannuation contributions made on behalf of employees:

• Are generally not subject to FBT
• May be subject to contributions tax in the super fund
• Can be salary sacrificed (with specific rules)
• Have annual contribution caps

However, some superannuation-related benefits may attract FBT:

• Paying an employee’s super guarantee shortfall
• Providing financial advice about superannuation
• Paying life insurance premiums outside of super

FBT and Termination Payments

Benefits provided upon termination of employment:

• May be subject to FBT if not part of a genuine redundancy
• Can include items like outplacement services
• May be taxed differently depending on the reason for termination

Genuine redundancy payments and early retirement scheme payments are generally tax-free up to certain limits and not subject to FBT.

FBT and Work-Related Items

Work-related items are often FBT-exempt if:

• Primarily used for work purposes
• Not provided as part of a salary packaging arrangement
• Not entertainment-related

Common exempt work-related items include:

• Laptop computers
• Mobile phones
• Briefcases
• Protective clothing
• Tools of trade

FBT and Relocation Expenses

Relocation expenses may be:

• FBT-exempt: If related to changing an employee’s work location
• Taxable: If not directly related to work relocation

Exempt relocation expenses can include:

• Removal and storage costs
• Travel costs to the new location
• Temporary accommodation (for up to 4 weeks)
• Connection of utilities at the new home

FBT and Child Care Benefits

Child care benefits provided by employers:

• Are generally subject to FBT
• May be provided through salary packaging arrangements
• Can be structured as either in-house or commercial child care

Some not-for-profit employers may provide child care benefits that are exempt from FBT if they meet specific conditions.

FBT and Health Benefits

Health-related benefits can include:

• Private health insurance premiums
• Gym memberships
• Medical expenses
• Vaccinations

FBT treatment depends on:

• Whether the benefit is work-related
• If it’s provided as part of a salary packaging arrangement
• Whether the employer is entitled to a GST credit

FBT and Education Benefits

Education benefits may be:

• FBT-exempt: If work-related (e.g., professional development courses)
• Taxable: If not work-related (e.g., school fees for employee’s children)

Work-related education expenses are generally FBT-exempt if:

• The course maintains or improves skills required for current employment
• There’s a direct connection between the course and the employee’s work duties
• The course doesn’t qualify the employee for a new profession

FBT and Housing Benefits

Housing benefits are common in certain industries:

• Remote area housing may be exempt from FBT
• Urban housing benefits are generally taxable
• Special rules apply to fly-in fly-out workers

The taxable value is generally the market rental value minus any employee contributions.

FBT and Airline Transport Benefits

Airlines and travel industry employers often provide:

• Free or discounted flights (standby travel)
• Airport lounge access
• Travel allowances

Special valuation rules apply to these benefits, often based on:

• The stand-by value of the flight
• The lowest available fare
• The actual cost to the employer

FBT and Meal Entertainment

Meal entertainment is a complex area of FBT:

• Can be provided as either “meal entertainment” or “property benefits”
• Different valuation methods apply (actual, 50/50 split, or 12-week register)
• Special rules for in-house dining facilities

The “50/50 split method” allows employers to treat 50% of meal entertainment expenses as taxable benefits, which can simplify record-keeping.

FBT and Car Parking

Car parking benefits are taxable if:

• Provided at or near the employee’s primary place of work
• The parking is not exempt (e.g., small business exemption)
• The commercial parking station threshold is exceeded ($9.25 per day in 2023-24)

Exemptions may apply for:

• Small businesses (less than $10 million turnover)
• Certain not-for-profit organizations
• Parking provided at locations not near the workplace

FBT and Mobile Phones

Mobile phones provided to employees:

• Are generally FBT-exempt if primarily used for work
• May be taxable if provided as part of a salary packaging arrangement
• Can include the phone itself and the service plan

The ATO considers a phone to be primarily for work use if:

• The employee’s duties require them to be on call
• The employee needs to contact clients or colleagues regularly
• There’s a policy limiting private use

FBT and Laptops/Tablets

Portable electronic devices are generally FBT-exempt if:

• Primarily used for work purposes
• Not provided as part of a salary packaging arrangement
• Not entertainment-related (e.g., gaming tablets)

Multiple similar items provided in the same FBT year may lose their exemption status.

FBT and Home Office Equipment

Home office equipment provided during COVID-19:

• Many items became temporarily FBT-exempt
• Normal rules have now largely returned
• Equipment primarily for work use remains exempt

Common home office items and their FBT treatment:

• Exempt: Desk, chair, computer monitor, keyboard, mouse
• Taxable: Decorative items, non-work-related equipment

FBT and Professional Memberships

Professional memberships and subscriptions:

• Are generally FBT-exempt if work-related
• Must be directly related to the employee’s current employment
• Can include union fees, industry association memberships, and professional journal subscriptions

The exemption doesn’t apply if the membership:

• Is for a social or sporting club
• Provides primarily personal benefits
• Is part of a salary packaging arrangement

FBT and Work-Related Travel

Work-related travel expenses:

• Are generally FBT-exempt if directly related to work
• May be taxable if there’s a significant private component
• Can include flights, accommodation, and meals during business trips

Special rules apply to:

• Fly-in fly-out workers
• International travel
• Travel allowances

FBT and Uniforms

Work uniforms and protective clothing:

• Are generally FBT-exempt
• Must be distinctive to the employer or protective in nature
• Can include cleaning and maintenance costs

Non-compulsory corporate wardrobes may be taxable benefits if they:

• Can be worn as ordinary clothing
• Are not distinctive to the employer
• Are not protective clothing

FBT and Tools of Trade

Tools of trade are generally FBT-exempt if:

• Primarily used for work purposes
• Not provided as part of a salary packaging arrangement
• Not entertainment-related

Examples of exempt tools of trade include:

• Tradespeople’s tools
• Musical instruments for musicians
• Camera equipment for photographers
• Medical equipment for healthcare professionals

FBT and Briefcases

Briefcases provided to employees:

• Are generally FBT-exempt
• Must be primarily for work use
• Can include laptop bags and similar items

The exemption may not apply if:

• The briefcase is unusually expensive (luxury item)
• It’s provided as part of a salary packaging arrangement
• It’s not primarily used for work purposes

FBT and Electronic Devices

Electronic devices provided to employees:

• Are generally FBT-exempt if primarily for work use
• Can include smartphones, tablets, laptops, and GPS devices
• May be taxable if provided as part of a salary packaging arrangement

The ATO allows one exempt device per employee per FBT year, with some exceptions for:

• Devices with substantially different functions
• Replacement devices
• Devices for different work purposes

FBT and Software

Software provided to employees:

• Is generally FBT-exempt if work-related
• Can include operating systems, productivity software, and industry-specific applications
• May be taxable if primarily for personal use

The exemption applies to:

• Software installed on work devices
• Cloud-based applications for work use
• Software updates and subscriptions

FBT and Protective Clothing

Protective clothing is FBT-exempt if:

• Designed to protect from injury or illness
• Required for the employee’s work duties
• Not suitable for everyday wear

Examples of exempt protective clothing:

• Safety helmets and hard hats
• High-visibility clothing
• Steel-capped boots
• Gloves and goggles
• Respiratory protective equipment

FBT and First Aid Kits

First aid kits provided to employees:

• Are generally FBT-exempt
• Must be for work-related first aid purposes
• Can include training in first aid

The exemption doesn’t apply to:

• First aid kits provided for personal use
• Excessively expensive first aid equipment
• First aid items not related to workplace safety

FBT and Sun Protection Items

Sun protection items are FBT-exempt if:

• Provided for work-related outdoor activities
• Include items like sunscreen, hats, and sunglasses
• Are primarily for protection from sun exposure at work

The ATO provides specific guidance on sun protection items for outdoor workers.

FBT and COVID-19 Related Benefits

During the COVID-19 pandemic, the ATO introduced temporary FBT exemptions for:

• Home office equipment (laptops, monitors, etc.)
• COVID-19 testing expenses
• Protective equipment for work
• Additional running expenses for working from home

Many of these temporary exemptions have now ended, and normal FBT rules apply.

FBT and Vaccinations

Vaccinations provided to employees:

• Are generally FBT-exempt if work-related
• Can include flu vaccinations and other work-required immunizations
• May be taxable if not directly related to work health and safety

During the COVID-19 pandemic, COVID-19 vaccinations were FBT-exempt when provided by employers.

FBT and Mental Health Support

Mental health support provided to employees:

• Is generally FBT-exempt if work-related
• Can include counseling services and mental health programs
• May be taxable if provided as part of a salary packaging arrangement

The ATO recognizes the importance of mental health support in the workplace and generally takes a favorable view of these benefits when they’re genuinely work-related.

FBT and Financial Advice

Financial advice provided to employees:

• Is generally a taxable fringe benefit
• May be FBT-exempt if related to superannuation and certain conditions are met
• Can include financial planning services and investment advice

The exemption for superannuation-related financial advice is limited to:

• Advice about the employer’s superannuation fund
• General financial literacy education
• Advice about salary sacrificing into superannuation

FBT and Legal Expenses

Legal expenses paid by employers:

• Are generally taxable fringe benefits
• May be FBT-exempt if related to work-related matters
• Can include legal fees for employment contracts or work-related disputes

Personal legal expenses (e.g., divorce, traffic offenses) paid by an employer are always taxable benefits.

FBT and Childcare (In-House)

In-house childcare provided by employers:

• May be FBT-exempt for not-for-profit employers
• Is generally taxable for commercial employers
• Must meet specific ATO requirements for exemption

The exemption for not-for-profits applies if:

• The childcare is provided on the employer’s business premises
• It’s provided primarily for employees’ children
• The employer is a registered charity or similar organization

FBT and Gym Memberships

Gym memberships provided to employees:

• Are generally taxable fringe benefits
• May be FBT-exempt if part of a workplace health program
• Can be provided through salary packaging arrangements

For the exemption to apply, the gym membership must be:

• Part of a broader workplace health program
• Primarily for preventing or treating work-related health issues
• Not provided as a general employee benefit

FBT and Public Transport

Public transport benefits:

• Are generally taxable fringe benefits
• May be FBT-exempt if for work-related travel
• Can include bus, train, tram, and ferry passes

Work-related public transport is exempt if:

• For travel between home and work (only in limited circumstances)
• For travel during work hours for work purposes
• Not provided as part of a salary packaging arrangement

FBT and Parking (Non-Car Parking)

Non-car parking benefits (e.g., bicycle parking):

• Are generally FBT-exempt
• Must be primarily for work-related purposes
• Can include bicycle storage facilities and end-of-trip facilities

These benefits support sustainable transport options and are encouraged by the ATO.

FBT and Meal Vouchers

Meal vouchers provided to employees:

• Are generally taxable fringe benefits
• May qualify for the minor benefits exemption if under $300
• Can be provided as part of salary packaging arrangements

Special rules apply to:

• Meal vouchers provided for overtime work
• Vouchers for specific work-related events
• Vouchers provided infrequently and irregularly

FBT and Gift Vouchers

Gift vouchers provided to employees:

• Are generally taxable fringe benefits
• May qualify for the minor benefits exemption if under $300
• Are always taxable if provided as part of a salary packaging arrangement

The minor benefits exemption doesn’t apply if:

• The voucher is provided regularly (e.g., monthly)
• It’s provided as a reward for services
• The value exceeds $300

FBT and Christmas Parties

Christmas parties and similar events:

• May be FBT-exempt under the minor benefits rules
• Are exempt if the cost per employee is less than $300
• Must be infrequent and not provided as a reward for services

If the cost exceeds $300 per employee:

• The full cost becomes a taxable fringe benefit
• The minor benefits exemption doesn’t apply
• GST credits may be claimable by the employer

FBT and Awards

Employee awards and prizes:

• May be FBT-exempt if they qualify as “non-entertainment” awards
• Are exempt if the total value is less than $300 and not frequent
• Must be for work performance or service

Non-exempt awards are taxable fringe benefits at their full value.

FBT and Relocation Counseling

Relocation counseling services:

• Are generally FBT-exempt if work-related
• Can include services to help employees adjust to a new location
• Must be directly related to a work-related relocation

The exemption doesn’t apply to:

• Personal counseling not related to relocation
• Services provided after the relocation is complete
• Counseling for non-work-related moves

FBT and Language Training

Language training provided to employees:

• Is generally FBT-exempt if work-related
• Must be directly related to the employee’s current or future work duties
• Can include both the training and related materials

The exemption doesn’t apply if:

• The training is for personal interest
• It’s not connected to the employee’s work
• It’s provided as part of a salary packaging arrangement

FBT and Professional Development

Professional development benefits:

• Are generally FBT-exempt if work-related
• Can include courses, conferences, and seminars
• Must maintain or improve skills required for current employment

The exemption doesn’t apply to:

• Training that qualifies the employee for a new profession
• Personal development courses not related to work
• Conferences that include significant leisure components

FBT and Subscriptions

Subscriptions provided to employees:

• Are generally FBT-exempt if work-related
• Can include professional journals, industry publications, and online services
• Must be directly related to the employee’s work

Non-work-related subscriptions (e.g., general magazines, streaming services) are taxable benefits.

FBT and Home Internet

Home internet expenses:

• May be FBT-exempt if work-related
• Are exempt if the employee works from home regularly
• Must be reasonably apportioned between work and private use

The ATO provides specific guidance on calculating the work-related portion of home internet costs.

FBT and Mobile Phone Plans

Mobile phone plans provided to employees:

• Are generally FBT-exempt if primarily for work use
• Can include both the phone and the service plan
• Must have a policy limiting private use

If the plan includes significant private use:

• The private portion may be a taxable benefit
• Employee contributions can reduce the taxable value
• Detailed records may be required to substantiate work use

FBT and Laptop Bags

Laptop bags and similar items:

• Are generally FBT-exempt if primarily for work use
• Can include briefcases, backpacks, and messenger bags
• Must be used mainly for carrying work items

The exemption may not apply if:

• The bag is unusually expensive (luxury item)
• It’s provided as part of a salary packaging arrangement
• It’s not primarily used for work purposes

FBT and USB Drives

USB drives and similar storage devices:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include external hard drives and memory cards

The exemption doesn’t apply if:

• The device is provided for personal use
• It’s part of a salary packaging arrangement
• It’s not used mainly for work purposes

FBT and Calculators

Calculators provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include scientific, financial, or specialized calculators

The exemption may not apply to:

• High-end calculators with significant personal use potential
• Calculators provided as part of a salary packaging arrangement
• Multiple calculators provided to the same employee

FBT and Dictionaries

Dictionaries and similar reference materials:

• Are generally FBT-exempt if work-related
• Can include both physical books and digital subscriptions
• Must be relevant to the employee’s work

The exemption applies to:

• Industry-specific dictionaries
• Technical reference manuals
• Language dictionaries for employees working with non-English speakers

FBT and Stationery

Stationery items provided to employees:

• Are generally FBT-exempt if work-related
• Can include pens, paper, notebooks, and office supplies
• Must be primarily used for work purposes

The exemption doesn’t apply to:

• Luxury stationery items
• Items provided for personal use
• Stationery provided as part of a salary packaging arrangement

FBT and Printers

Printers provided to employees:

• Are generally FBT-exempt if primarily for work use
• Can include both the printer and consumables
• Must be used mainly for work purposes

For home office printers:

• The exemption applies if the employee works from home regularly
• The printer must be primarily for work use
• Consumables like ink and paper are also exempt if work-related

FBT and Scanners

Scanners provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both document and specialized scanners

The exemption applies to:

• Office scanners for document management
• Portable scanners for field workers
• Specialized scanners for specific industries

FBT and Projectors

Projectors provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both portable and installed projectors

The exemption may not apply if:

• The projector is provided for personal use
• It’s part of a salary packaging arrangement
• It’s not used mainly for work purposes

FBT and Whiteboards

Whiteboards provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both wall-mounted and portable whiteboards

The exemption applies to:

• Office whiteboards for meetings and planning
• Home office whiteboards for employees who work from home
• Specialized whiteboards for specific work purposes

FBT and Filing Cabinets

Filing cabinets provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both office and home office filing solutions

The exemption doesn’t apply to:

• Filing cabinets provided for personal use
• Luxury or unusually expensive filing systems
• Filing cabinets provided as part of a salary packaging arrangement

FBT and Desk Chairs

Desk chairs provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both office and home office chairs

The exemption applies to:

• Ergonomic chairs for office use
• Chairs for home offices
• Specialized chairs for specific work requirements

FBT and Desks

Desks provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both office and home office desks

The exemption doesn’t apply to:

• Desks provided for personal use
• Unusually expensive or luxury desks
• Desks provided as part of a salary packaging arrangement

FBT and Office Partitions

Office partitions provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both permanent and portable partitions

The exemption applies to:

• Office cubicle partitions
• Home office room dividers
• Specialized partitions for specific work requirements

FBT and Monitor Arms

Monitor arms provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both single and multiple monitor arms

The exemption applies to:

• Ergonomic monitor arms for office use
• Monitor arms for home offices
• Specialized monitor arms for specific work setups

FBT and Footrests

Footrests provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both standard and ergonomic footrests

The exemption applies to:

• Ergonomic footrests for office use
• Footrests for home offices
• Specialized footrests for specific work requirements

FBT and Document Shredders

Document shredders provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both office and home office shredders

The exemption doesn’t apply to:

• Shredders provided for personal use
• Unusually expensive or industrial-grade shredders
• Shredders provided as part of a salary packaging arrangement

FBT and Binding Machines

Binding machines provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both manual and electric binding machines

The exemption applies to:

• Office binding machines for document preparation
• Home office binding machines for employees who work from home
• Specialized binding machines for specific work requirements

FBT and Laminators

Laminators provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both small and large format laminators

The exemption doesn’t apply to:

• Laminators provided for personal use
• Industrial-grade laminators not required for work
• Laminators provided as part of a salary packaging arrangement

FBT and Label Makers

Label makers provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both handheld and electronic label makers

The exemption applies to:

• Office label makers for organizing files and equipment
• Industrial label makers for warehouse and inventory management
• Specialized label makers for specific work requirements

FBT and Staplers

Staplers provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both manual and electric staplers

The exemption doesn’t apply to:

• Staplers provided for personal use
• Unusually expensive or specialty staplers
• Staplers provided as part of a salary packaging arrangement

FBT and Hole Punches

Hole punches provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both manual and electric hole punches

The exemption applies to:

• Office hole punches for document preparation
• Heavy-duty hole punches for bulk document processing
• Specialized hole punches for specific work requirements

FBT and Calculators (Financial)

Financial calculators provided to employees:

• Are generally FBT-exempt if work-related
• Must be primarily used for work purposes
• Can include both basic and advanced financial calculators

The exemption applies to:

• Financial calculators for accounting and finance professionals
• Scientific calculators for engineers and scientists
• Specialized calculators for specific industries