FBT and Exempt Benefits (Australia) Procedures

Parent Policy

Fringe Benefits Tax (Australia) Policy

An exempt benefit is a benefit that is not considered to be a fringe benefit and therefore is not subject to FBT.

Definition of terms

FBT: Fringe Benefits Tax
ATO: Australian Taxation Office
FBT Year: 1 April to 31 March

Minor Benefits

• A benefit which is less than $300.00 in value and it is considered that it is unreasonable to treat the benefit as a fringe benefit is an exempt benefit

Responsibility

Departmental Finance Officer

Determining whether it would be unreasonable to treat the minor benefit as a fringe benefit

• The infrequency and irregularity with which associated benefits, being benefits that are identical or similar to the minor benefit are provided.

Responsibility

Departmental Finance Officer

• The more frequently and regularly they are provided the less likely that the minor benefit will qualify as an exempt benefit.

Responsibility

Departmental Finance Officer

• The exemption does not apply to minor entertainment benefits

Responsibility

Departmental Finance Officer

Content Enquiries: Finance Policy