Fringe benefits tax is a tax paid on certain benefits you provide to your employees or your employees’ associates. FBT is separate from income tax and is based on the taxable value of the various fringe benefits you provide.

The FBT year runs from 1 April to 31 March.

A fringe benefit is a benefit provided in respect of employment. This effectively means a benefit provided to an employee (or their associate) because they are an employee.
You can provide these benefits, or they can be provided by:

• An associate of yours
• A third party under an arrangement with you

An employee can be a current, future or former employee.
Some employers, including charities, may need to work out the status of their workers. Many will be volunteers, however, some will be contractors and employees. Generally, benefits provided to volunteers and contractors don’t attract FBT.
Benefits include:

• Rights
• Privileges
• Services