What is Fringe Benefits Tax (FBT) and how is FBT calculated?

Fringe benefits tax was introduced in legislation in 1986; prior to this businesses were providing things like cars, corporate boxes and lunches tax-free to employees, their families and executives with very little obligation to make the benefit related to their employment.
The whole purpose of Fringe Benefits Tax legislation is for the government (ATO) to receive the tax that would have been paid, if the employee paid for the benefit out of their own salary from take-home pay. The difference being, FBT is calculated based on the highest tax bracket regardless of what tax bracket an employee is on. Read full article online here. www.appliededu...

[@staralwang5487]

You calculated wrong on the camera case, the total cost for business is 5377.32+5000=10377.32 instead of 9488.47. Also the table for the camera case also, net tax paid is $5377.32. Thank yoiu

[@deesoller7077]

I think the reason for 9,488.47 calculation was because the 10% GST was offset from the total cost incurred by the business.

[@deepshah5007]

Is there pdf available ?

[@alexmacdonald3]

I would like to see the employee side of FBT a bit more. I can get a novated lease through my employer where some of the payments come out of pre-tax income, and some come from post-tax income.
I can't figure out if I'm going to be liable to pay FBT.

[@staralwang5487]

Pre tax component is called salary sacrifice amount and help you save tax, the post tax component is out pocket money for you to pay your FBT contributed by the employer, so basically employer transferred the FBT to you and they paid nothing.

[@donnabosleng5162]

@@staralwang5487 My employer is offering an annual $2,650 meal entertainment through salary packaging, if I was liable for FBT? Is it worth to avail of this benefit? The Salary packaging company also charges $66/annum for the meal entertainment card. Thank you

[@gurshansingh366]

Thanks

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