Small Business Tax Dictionary
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Fringe Benefits Tax (FBT)
Fringe Benefits Tax (FBT) is an Australian tax levied on certain non-cash benefits that employers provide to employees or associates. These benefits may include the use of a company car, entertainment, or low-interest loans. FBT is paid by the employer and is separate from income tax. The tax aims to ensure fairness in the tax system by taxing benefits provided in lieu of salary. Compliance with FBT regulations requires understanding the types of benefits subject to the tax, calculating the taxable value, and reporting accurately. Proper management of FBT supports transparent employment practices and helps maintain compliance with Australian tax laws.
