What is fringe benefits tax?
Understand what fringe benefits tax is and when employers may need to consider it.
Summary
Fringe benefits tax, or FBT, can apply when employers provide certain benefits to employees or their associates in respect of employment.
What this means
FBT is separate from income tax and PAYG withholding. It focuses on non-cash or other benefits provided because of employment, such as cars, entertainment, or expense payments in some circumstances.
Employers need to check whether a benefit is taxable, exempt, or concessionally treated.
Typical actions
- Identify benefits provided to employees or associates.
- Check whether FBT applies.
- Keep records supporting FBT treatment.
- Review FBT reporting and payment obligations.
- Seek professional advice for complex benefits.
Official ATO sources
Last checked: 20 June 2026
Fringe benefits tax
ATO hub for fringe benefits tax.
Fringe benefits tax – a guide for employers
ATO legal database guide for employers on FBT.
Obligations when people work for you
Explains broader employer obligations.
Related questions
- What tax obligations do employers have?
- What records do employers need to keep?
- What is PAYG withholding for employees?
- What is Single Touch Payroll?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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