Unit 3: Fringe benefits tax (FBT) and employment remuneration

  1. Overview
  2. When does FBT apply
    Benefits outside the scope of FBT and dealt with under the income tax law
    -Salary or wages
    -Benefits under employee share schemes
    -Employer-provided complying superannuation fund contributions
    -Employment termination payments (e.g. a lump sum paid on retirement) and payments for unused leave
    -Benefits that are deemed dividends under the ITAA 1936, including Division 7A ITAA 1936
    -Payments of a capital nature for a legally enforceable contract for restraint of trade, or for personal injury to a person
  3. Major category of the fringe benefit
  4. Debt waiver and loan FBT
  5. Expense Fringe Benefit
  6. Living-away-from home allowance [LAFHA] 
  7. Car parking fringe benefits
  8. Property fringe benefits
    – In house property fringe benefits
    – Otherwise deductible, e.g. bookstore’s book discount to its own staff
    – $1,000 concession
  9. Residual fringe benefits
  10. Meal entertainment fringe benefits
    50/50 method
    12-week register method
    Where the employer chooses not to apply Division 9A
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