The following is a checklist of items which are specified as exempt, or attract reduced fringe benefits tax exposure, under the Fringe Benefits Assessment Act.
All such concessions are subject to qualifications and pre-conditions.
So this list is a guide only and should not be relied on as a definitive or exhaustive statement of FBT obligations.
Reminders:
- Proposed FBT exemption for electric vehicles: Labor’s election policy includes an FBT exemption for vehicles costing below the luxury car tax fuel efficient threshold with effect from 1 July 2022. See Treasury Laws Amendment (Electric Car Discount) Bill 2022, and Electric Vehicle Rebates In Australia.
- Emergency assistance to employees is exempt; (use search term “emergency”)
- Retraining and Reskilling expenses for redundant employees are exempt (from 2 Oct 2020); (use search term “reskill”)
- PCG 2018/3 provides safe harbour methodologies for exempt car and exempt residual benefits relating to private use of a vehicle that is ‘minor, infrequent and irregular’.
- Read summary of Covid-19 related claims here
Section references in the table column 3 are to the Fringe Benefits Assessment Act 1986.
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| Fringe Benefit | Exemption/reduction description | Refs to Assessment Act |
|---|---|---|
| "Anything done" to cause a private company dividend | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (r) |
| Aggregate value of in-house fringe benefits up to $1,000 (salary-packaged benefits excluded) | An $1,000 exemption applicable to in-house expense payment fringe benefits, in-house property fringe benefits, in-house residual fringe benefits, and airline transport fringe benefits, but not including any benefit accessed under a salary sacrifice arrangement since 22 October 2012. Concession can apply in addition to other concessions (e.g. the 50% reduction in taxable value) | Section 62 |
| Amortisation of the taxable value of certain remote area housing benefits, spread over 5 to 7 years. | This concession allows the amortisation of fringe benefits provided in connection with remote area home ownership schemes. The period of amortisation is generally five to seven years. Note also that where an employee is contractually forced to suffer a loss in selling the home back to the employer, 50% of that loss can be deducted from the aggregate of all FBT taxable values in that FBT year. (See further: Remote area home ownership schemes | Section 65CA to 65CC Remote areas |
| Annuity payment | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (le)(v) |
| Any benefits provided by foreign governments | Tax exemptions provided by the Consular Privileges and Immunities Act 1972 or the Diplomatic Privileges and Immunities Act 1967 | Section 56 |
| Any benefits provided by international organisations | Any benefits provided by organisations covered by the International Organisations (Privileges and Immunities) Act 1963 or granted an exemption by an international agreement to which Australia is a party. | Section 55 |
| Approved worker entitlement funds | Contributions under an industrial agreement to approved trust funds to cover workers entitlements inlcuding long service leave, sick leave or redundancy | Section 58PA Approved worker entitlement funds |
| Arms length advance or loan | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (le)(iv) |
| Benefits provided by a non-profit society or association ('rebatable') hospital employer | See current FBT concessional caps here. A 'rebatable employer' is an entity which is tax exempt at any time in the year, having met conditions under Section 65(J) | Section 57A(4), 65J |
| Benefits provided by a public ambulance services employer | The employment duties must be predominantly involved in the ambulance service. see current FBT concessional caps here | Section 57A(3)(b) |
| Benefits provided by a public hospital employer | see current FBT concessional caps here | Section 57A(3)(a) |
| Benefits provided by a registered health promotion charity | The charity must be ACNC registered and endorsed by the Tax Office. see current FBT concessional caps here | Section 57A(5), 123D(1) |
| Benefits provided by government body hospital employer | The employment duties must be exclusively performed in, or in connection with a public hospital or a non-profit rebatable hospital. see current FBT concessional caps here | Section 57A(2), Tax Determination TD 2015/12 |
| Benefits provided by Public Benevolent Institutions (PBIs) | The employer must be ACNC registered with benevolent purposes (not a hospital or ambulance service). see current FBT concessional caps here | Section 57A(1), 123C, CIS:PBI See also Religious practitioners |
| Benefits relating to the consequences of work-related trauma | The expenses must be either covered by workers compensation, or otherwise deemed reasonable | Section 58J, TD 93/64 |
| Briefcase | A briefcase primarily for use in the employee's employment | Section 58X |
| Capital consideration for restraint of trade or personal injury | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (m) |
| Car & vehicle expenses | Operating expenses of car benefit vehicles and exempt vehicles are exempt | Section 53 See FBT Exempt Vehices |
| Car parking | Car parking which isn't an “eligible car parking expense payment benefit” is exempt | Section 58G,Div 10A |
| Car parking - disabled | Disabled employee with a valid disabled person’s parking permit displayed | Section 39A |
| Car parking - government bodies | Car parking for employees of government public educational institutions | Section 58G(3) |
| Car parking - non-profits | Car parking for employees of non-profit scientific institution, registered charity, or public educational institution. | Section 58G |
| Car parking - small business employer | A small business employer has income under $10 million or is a small business entity for income tax purposes. Additional conditions are that the employer is not a government body or public company, and that the car parking is not at a commercial parking station. | Section 58GA, ITAA 1997 section 328-110 |
| Cars that are zero or low emissions vehicles (electric car discounts) | Exemption from fringe benefits tax the use, or availability for use, of cars made available by employers to current employees that are zero or low emissions vehicles with a value at first retail sale below the luxury car tax threshold for fuel efficient vehicles. | Section 8A |
| Complying superannuation contributions | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (j) |
| Computer software | An item of computer software primarily for use in the employee's employment | Section 58X |
| Contingent work related trauma compensation | Contingent rights to compensation for work trauma, workers compensation insurance | Section 58J |
| Contributions for priority access to child care services | Exemption applies in respect of a number of certified specified child care services | Section 47(8), ATOID 2012/58 |
| Deemed dividend | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (n) |
| Early retirement scheme payment | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (la) |
| Emergency assistance to employee or associates | An 'emergency' involves any of a natural disaster, a conflict involving an armed force, a civil disturbance, an accident, a serious illness or any similar matter. 'Assistance' includes first aid or other emergency health care, emergency meals or food supplies, emergency clothing, emergency transport, emergency accommodation, emergency use of household goods, temporary repairs or any similar matter. | Section 58N,136(1) ATO article |
| Employee share scheme interests | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (h), (ha) |
| Employment termination payments | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (lc),(ld) |
| Exemption for specified in-house fringe benefits, for a total (the benefits are aggregated) value of up to $1,000 | Exemption excludes salary packaging arrangements from 22 October 2012. An "in-house fringe benefit" comprises four categories of fringe benefit: in-house property fringe benefit, in-house residual fringe benefit, in-house property expense payment fringe benefit and in-house residual expense payment fringe benefit. | Section 62, 136(1) |
| Food and drink for non-live-in domestic services employees | Employer is a natural person or registered religious institution, exemption is for food or drink consumed at or about the time duties are performed | Section 58V |
| Food or drink provided to an employee receiving a board fringe benefit | Exempt: The food or drink must not be a meal or provided in a social context and must be consumed on the day | Section 54 |
| Foreign termination payments | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (le)(iii) |
| Fringe benefits associated with the full-time education of a child (under 25 years of age) of an overseas employee | Car, expense payment, property and residual fringe benefits are eligible. Employees posted overseas for a minimum of 28 days are eligible. Eligible overseas employees are those living and working awaw from their home country (usual place of residence). | Section 65A, 143B |
| Fringe benefits which are non-deductible under the Personal Services income rules (Div 85 of the ITAA) | Section 61G | |
| Funeral expenses of an employee | The occasion of death removes 'employee' status, and therefore a fringe benefit does not arise. | Section 136(1) definition of fringe benefit |
| Genuine redundancy payment | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (lb) |
| GPS navigation receiver | Portable electronic device primarily for use in the employee's employment | Section 58X |
| Grant, payment or acquisition of a carried interest - CGT event K9 | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (ma), (mb) |
| Health care provided from an in-house health care facility of the employer | Health care' is broadly defined in section 136(1) | Section 58K, 136(1) |
| Household goods leasing while living away from home | Lease of goods for domestic use of family members while accommodated away from home. | Section 58E |
| LAFH - Accommodation provided to employee solely due to the employment requirement to live away from normal residence | A number of conditions apply: The employee must maintain a home in Australia (limited to 12 months) or works on a drive-in-drive-out or fly-in-fly-out basis (with further conditions) and business travel is excluded | Section 47(5) |
| Laptop | Portable electronic device primarily for use in the employee's employment | Section 58X |
| Live-in accommodation for a residential care worker, assisting for one or more elderly or disadvantaged persons at home. | Exempt benefits include accommodation, food and drink, and 'residential fuel' (e.g. electricity) provided for the care worker. Employer must be a natural person, not acting as trustee. | Section 58U |
| Live-in accommodation for residential care workers in which is provided for accommodation for elderly or disadvantaged persons | Exempt benefits include accommodation, food and drink, and 'residential fuel' (e.g. electricity) provided to the care worker. The employer must be a government or ACNC registered or non-profit body, with caring for elderly or disadvantaged persons as one of its activities. | Section 58, Non-profit companies - live-in carers |
| Live-in domestic accommodation for religious practitioners | Exempt benefits include accommodation, food and drink, and 'residential fuel' (e.g. electricity). The institution must be ACNC registered with religious purposes. | Section 58T |
| Living away from home allowance benefits | The taxable value of a LAFHA benefit is the amount of the allowance reduced by any exempt accommodation and food components. | Section 30 LAFHA fringe benefits |
| Long service awards benefits | Awards for 15 years or more of long service, limited by formula to $1,000 plus $100 for each year of service in excess of 15 years | Section 58Q |
| Meal fringe benefits associated with temporary accommodation relating to a relocation of employment limited to taxable value of $2 per meal for adults and $1 per meal for children under 12. | These are meals for employee and family members provided in associated with the temporary accommodation which qualifies for concession under section 61C. | Section 61D, 61C |
| Meals - for remote area primary production employees | Meals which are ready for consumption on a working day, and not being meal entertainment | Section 58ZD, 37AD, Remote areas |
| Meals entertainment - tax exempt bodies | PBIs, HPCs, public hospitals, non-profit hospitals and public ambulance services are exempt on meal entertainment expenses; Note that legislation has been passed capping salary-sacrificed meal entertainment and facility leasing expenses at $5,000 from 1 April 2016. Under the measures all use of meal entertainment benefits is reportable. See: Tightening fringe benefit tax on not-for-profit organisations | Section 57A, 37AD, 5B(1L) see also ATO exempt body meals |
| Membership fees and subscriptions | An eligible membership or subscription is for a trade or professional journal, corporate credit card or airport lounge membership | Section 58Y |
| Migrant language training of the employee or of an associate | Applies for existing or intending migrants not visitors | 58M and 136(1) |
| Minor benefits | A minor benefit is less than $300 in value which is not excluded, and meets a reasonableness test after taking any associated benefits into account. | Section 58P,Minor benefits |
| Mobile phone | Mobile phone primarily for use in the employee's employment | Section 58X |
| Newspapers and periodicals | For use in respect of employment (not merely incidental) | Section 58H |
| Non-assessable amounts subject to family trust distribution tax (s 271-105) | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (q) |
| Otherwise deductible expenses | A taxable expense payment benefit is reduced by the amount that would have been a tax deduction if the employee had incurred and paid the expense directly | Section 24, No private use declaration - expense payments |
| Participation in an approved student exchange program | Applies to State or Commonwealth registered student exchange programs | Section 58ZB |
| Portable printer | Portable printer primarily for use in the employee's employment | Section 58X |
| Private company (s 109D) loans not deemed dividend because of s109N | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (s) |
| Protective clothing | An item of protective clothing primarily for use in the employee's employment | Section 58X |
| Quit smoking program | A quit-smoking moking orogram falls under Section 58M (work-related counselling) | Section 58M, ATOID 2001/543 |
| Recreational and child care facilities | Located on the business premises | Section 47(2) ATOID 2015/25 |
| Reduction of 50% of taxable value for a housing loan interest (expense payment) fringe benefit on a dwelling (usual place of residence) in a remote area | The employee must be living and working in a remote area; Benefit arrangement must be arm's length. | Section 60(2), 142(1) ATO - Remote Area Housing |
| Reduction of 50% of taxable value for remote area residential fuel (associated with any of remote area housing, housing loan or housing rent fringe benefit) | Conditional upon arm's length arrangement; An expense payment, property or residual benefit; Residential fuel is any fuel (e.g. gas, electricity) for domestic use; Section 62 in-house reduction (aggregate up to $1,000) can be deducted before the 50% reduction | Section 59, 62, 136(1) Remote areas |
| Reduction of 50% of taxable value of a housing loan fringe benefit for a dwelling (usual place of residence) in a remote area. | The employee must be living and working in a remote area; Benefit arrangement must be arm's length. | Section 60(1), 142(1) ATO - Remote Area Housing Remote areas |
| Reduction of 50% of taxable value of a property fringe benefit which is the provision of a residential property or land for its construction, as the usual place of residence in a remote area; amortisation of up to 5 to 7 years. | The employee must be living and working in a remote area; Benefit arrangement must be arm's length. | Section 60(3), 142(2), 65CA ATO - Remote Area Housing Remote areas |
| Reduction of 50% of taxable value of remote area holiday transport, or if lower, the usual transport (economy airfares) & incidentals cost between workplace and the workplace's state capital city) | The holiday transport must NOT be the most direct practicable route between workplace and capital city of the state of previous home or of the state in which the workplace is located; The holiday period must be for at least 3 days; Alternative calculation methods apply for car distance rate reimbursements and allowances paid to employee's spouse or child. | Section 60A, 143(3), 61, Remote areas |
| Reduction of 50% of taxable value of remote area holiday transport, or if lower, the usual transport (economy airfares) & incidentals cost between workplace and the workplace's state capital city) | The transport must be the most direct route between the workplace locality and the employee’s previous home or the capital city of the state in which the the workplace is located. The holiday period must be for at least 3 days; Alternative calculation methods apply for car distance rate reimbursements and allowances paid to employee's spouse or child. | Section 61 Remote areas |
| Reduction of 50% of taxable value of the expense payment fringe benefit which is a payment to acquire or contruct a dwelling for use as the usual place of residence in a remote area; amortisation for up to 5 to 7 years. | The employee must be living and working in a remote area; Benefit arrangement must be arm's length. | Section 60(4), 142(2C), 65CA ATO - Remote Area Housing |
| Reduction of 50% of taxable value of the housing rent (expense payment) fringe benefit connected with a unit of accommodation (usual place of residence) in a remote area | The employee must be living and working in a remote area; Benefit arrangement must be arm's length. | Section 60(2A), 142(1A) ATO - Remote Area Housing Remote areas |
| Reduction of 50% of taxable value of the property fringe benefit which is a remote area residential property option fee; amortisation for up to 5 to 7 years. | The employee must be living and working in a remote area; Benefit arrangement must be arm's length. There are time restrictions applicable to the option and to the property occupation and disposal. | Section 60(5), 142(2A), 65CA ATO - Remote Area Housing Remote areas |
| Reduction of 50% of taxable value of the property fringe benefit which is a remote area residential property repurchase consideration | The employee must be living and working in a remote area; Benefit arrangement must be arm's length. There are time restrictions applicable to the property occupation and disposal and limitations on market value. | Section 60(6), 60(7) ATO - Remote Area Housing Remote areas |
| Reduction of 50% of taxable value overseas employment holiday transport | The travel must be in connection with leave of more than 3 days, and applies to overseas employees in Australia or vice versa; For a detailed explanation of the rules see: ATO - Overseas holiday transport | Section 61A |
| Reduction: Taxable value of an expense payment fringe benefit is reduced by the entertainment cost percentage applicable to a third party | The entertainment percentage is that applicable to entertaining persons other than the employee or associate. (It will also be a non-deductible expense.) | Section 63A |
| Reduction: The 'reasonable' taxable value of food and drink for an employee required to live away from home (either an expense payment or property fringe benefit) is reduced to a statutory amount | The taxable value of food and drink deemed reasonable (according to the ATO's annual determination) is reduced to $42 per week (adults) and $21 per week (children under 12); Other conditions apply - see ATO - Living away from home – food provided | Section 63 |
| Reimbursement of car expenses | Reimbursement at cents per km rate is exempt if it's at the approved basic rate (plus supplementary rate if applicable) | Cents per km vehicle expenses and FBTAA s.61F and Reg 14 |
| Relocation consultant | Under an arms-length arrangement to provide assistance to relocate for employment purposes | Section 58AA |
| Relocation removal and storage of employee's household effects | Removal and storage of household effects associated with a requirement to relocate for employment purposes | Section 58B, IT 2614 |
| Relocation transport | Transport, accommodation or meals because of an employee's relocation for employment purposes | Section 58F,143A, IT 2614 |
| Relocation transport (employee's car) reimbursed at approved set km rate | Applies to travel to a new employment location or on return; Employee Declaration required | Section 61B |
| Relocation: Incidental expenses of the acquisition or sale of a residential property | Relevant incidental expenses are specified in Section 141A. There is a 4 year time limit on a property purchase, and a 2 year time limit on the sale (measured from the the date of property sale or purchase contract to the date of commencement of employment at the new location). | Section 58C, 141A, ATOID 2013/8, IT 2614 |
| Remote area definition | There a a number of FBT concessions applicable to employees in remote areas. The definitions of applicable areas see: Remote areas | |
| Remote area housing | Accommodation for employees living and working in a remote area. Remote area means not in or near an eligible urban area. Benefits may take the form or rental or loan assistance or subsidies. | Section 58ZC, Remote areas |
| Residual fringe benefits covered by a “no-private-use declaration” | Residual benefits are those which fall outside the other specific categories in the Act; Residual fringe benefits with a nil taxable value (no private use enforced by employer policies) are exempt | Section 47A, 45, No private use declaration |
| Safety awards | Annual limit of $200 notional taxable value | Section 58R |
| Salary or wages | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (f) |
| Superannuation benefits | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (k) |
| Taxi travel | A Single trip to or from work or as a result of sickness or injury | Section 58Z and see also |
| Temporary accommodation relating to a relocation of employment, subject to time limits | For detailed rules see: ATO - Relocation – temporary accommodation; Employee Declaration required | Section 61C |
| The residual benefit which is the regular transport of remote location or oil rig employees between home and work | Exemption applies to travel between usual place of residence and usual place of employment for employees regularly working a number of days on-and-off, if accommodation is supplied at or near the work site and employees are required, in circumstances where it is impractical do otherwise, to return to their usual place of residence on their off days. | Section 47(7) Remote areas |
| Tools of trade | Exempt if primarily for use in the employee's employment | Section 58X |
| Transport between home and work provided by an employer which is a public transport provider | Excludes air travel and salary packaging arrangements | Section 47(1) |
| Transport connected with employment interview or selection test | Transport, meals or accommodation to attend an interview or selection test regarding an application for employment, a promotion or job transfer | Section 58A,143D |
| Travel - compassionate purposes | Includes transport, meals or accommodation for employee or close relative to attend the funeral or in connection with the serious illness of a close relative. Applies to employees travelling in the course of duties, living away from home or living or working in a non-urban location | Section 58LA |
| Travel costs associated with Section 58M benefits | Section 58M covers work related medical examinations, medical screenings, preventative health care, counselling and migrant language training. Car expenses reimbursed on a cents per kilometre basis are excluded | Section 58M |
| Travel for the sole purpose of medical treatment while employed overseas | Includes transport, accommodation or meals, and necessary accompanying family members who live with the employee - subject to a number of detailed conditions | Section 58L |
| Travel on public transport between home and work for police service employees | Exemption covers travel between place of residence and primary place of employment | Section 47(1A) |
| Travel reimbursement at the basic car rate (plus supplementary rate when applicable) per km of car travel in respect of work-related medical examination, work-related medical screening, work-related preventative health care, work-related counselling (including an associate), migrant language training (including an associate) | Employee Declaration required | Section 61E |
| Travel reimbursement at the basic car rate per km of car travel in respect of employment interviews or selection tests | Employee Declaration required | Section 61F |
| Unused annual leave payment | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (le)(i) |
| Unused long service leave payment | By the definition of "fringe benefit", is not a fringe benefit | Section 136(1) "fringe benefit" (le)(ii) |
| Use of a motor vehicle not being a taxi or a car or any vehicle with a less than 1 tonne carrying capacity | Any private use must be minor, infrequent and irregular | Section 47(6) See also FBT exempt motor vehicles |
| Use of an unregistered motor vehicle | The motor vehicle must be used wholly or principally in connection with the employer's business operations, and be unregistered for the whole year | Section 47(6A) |
| Use of employer's property | Use of property which is wholly or principally used directly in connection with business operations of the employer's business operations (excluding motor vehicles) | Section 47(3) |
| Utilities connection costs | Relocation costs of connecting or reconnecting gas, electricity or telephone within 12 months of changing residence | Section 58D, IT 2614 |
| Work-related counselling of the employee or an associate | Scope of definition refers to work-related matters of safety, health, fitness, stress management, personal relationships,retirement problems,drug or alcohol abuse, rehabilitation or prevention of work-related trauma or of other disease or injury, first aid and any similar matter | 58M and 136(1) |
| Work-related medical examination of the employee | Must be principally work related | 58M and 136(1) |
| Work-related medical screening of the employee | Must be principally work related and available to all employees at risk of work-related trauma. | 58M and 136(1) |
| Work-related preventative health care | Must be work related and available to all employees at risk of work-related trauma. | 58M and 136(1) |
| See also FBT checklists | FBT checklists | |
| Retraining and reskilling | Provision of training or education to a redundant, or soon to be redundant, employee for the purpose of assisting that employee to gain new employment. (From 2 October 2020). | Subsection 58ZE(3) see the Bill (now law) See also ato.gov.au article |
This page was last modified 2022-04-28