FBT Exemptions and Concessions Checklist

The following is a checklist of items which are exempt or attract reduced fringe benefits tax exposure. All such concessions are subject to (often complex) qualifications and pre-conditions. This list is a guide only and should not be relied on as a definitive statement of FBT obligations.

Section references in column 3 are to the Fringe Benefits Assessment Act 1986

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Fringe BenefitDescription/detailRefs to Assessment Act
"Anything done" to cause a private company dividendBy the definition of "fringe benefit", is not a fringe benefitSection 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 schemesSection 65CA to 65CC Remote areas
Annuity paymentBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (le)(v)
Any benefits provided by foreign governmentsTax exemptions provided by the Consular Privileges and Immunities Act 1972 or the Diplomatic Privileges and Immunities Act 1967Section 56
Any benefits provided by international organisationsAny 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 fundsContributions under an industrial agreement to approved trust funds to cover workers entitlements inlcuding long service leave, sick leave or redundancySection 58PA
Approved worker entitlement funds
Arms length advance or loanBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (le)(iv)
Benefits provided by a non-profit society or association ('rebatable') hospital employerSee 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 employerThe employment duties must be predominantly involved in the ambulance service. see current FBT concessional caps hereSection 57A(3)(b)
Benefits provided by a public hospital employersee current FBT concessional caps hereSection 57A(3)(a)
Benefits provided by a registered health promotion charityThe charity must be ACNC registered and endorsed by the Tax Office. see current FBT concessional caps hereSection 57A(5), 123D(1)
Benefits provided by government body hospital employerThe 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 hereSection 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 hereSection 57A(1), 123C, CIS:PBI
See also Religious practitioners
Benefits relating to the consequences of work-related traumaThe expenses must be either covered by workers compensation, or otherwise deemed reasonableSection 58J, TD 93/64
BriefcaseA briefcase primarily for use in the employee's employmentSection 58X
Capital consideration for restraint of trade or personal injuryBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (m)
Car & vehicle expensesOperating expenses of car benefit vehicles and exempt vehicles are exemptSection 53
Car parkingCar parking which isn't an “eligible car parking expense payment benefit” is exemptSection 58G,Div 10A
Car parking - disabledDisabled employee with a valid disabled person’s parking permit displayedSection 39A
Car parking - government bodiesCar parking for employees of government public educational institutionsSection 58G(3)
Car parking - non-profitsCar parking for employees of non-profit scientific institution, registered charity, or public educational institution.Section 58G
Car parking - small business employerA 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
Complying superannuation contributionsBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (j)
Computer softwareAn item of computer software primarily for use in the employee's employmentSection 58X
Contingent work related trauma compensationContingent rights to compensation for work trauma, workers compensation insuranceSection 58J
Contributions for priority access to child care servicesExemption applies in respect of a number of certified specified child care servicesSection 47(8), ATOID 2012/58
Deemed dividendBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (n)
Early retirement scheme paymentBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (la)
Emergency assistance to employee or associatesAn '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)
Employee share scheme interestsBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (h), (ha)
Employment termination paymentsBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (lc),(ld)
Exemption for specified in-house fringe benefits, for a total (the benefits are aggregated) value of up to $1,000Exemption 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 employeesEmployer is a natural person or registered religious institution, exemption is for food or drink consumed at or about the time duties are performedSection 58V
Food or drink provided to an employee receiving a board fringe benefitExempt: The food or drink must not be a meal or provided in a social context and must be consumed on the daySection 54
Foreign termination paymentsBy the definition of "fringe benefit", is not a fringe benefitSection 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 employeeCar, 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 employeeThe occasion of death removes 'employee' status, and therefore a fringe benefit does not arise.Section 136(1) definition of fringe benefit
Genuine redundancy paymentBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (lb)
GPS navigation receiverPortable electronic device primarily for use in the employee's employmentSection 58X
Grant, payment or acquisition of a carried interest - CGT event K9By the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (ma), (mb)
Health care provided from an in-house health care facility of the employerHealth care' is broadly defined in section 136(1)Section 58K, 136(1)
Household goods leasing while living away from homeLease 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 residenceA 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 excludedSection 47(5)
LaptopPortable electronic device primarily for use in the employee's employmentSection 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 personsExempt 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 practitionersExempt 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 benefitsThe 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 benefitsAwards 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 yearsSection 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 fro concession under section 61C.Section 61D, 61C
Meals - for remote area primary production employeesMeals which are ready for consumption on a working day, and not being meal entertainmentSection 58ZD, 37AD, Remote areas
Meals entertainment - tax exempt bodiesPBIs, 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 organisationsSection 57A, 37AD, 5B(1L) see also ATO exempt body meals
Membership fees and subscriptionsAn eligible membership or subscription is for a trade or professional journal, corporate credit card or airport lounge membershipSection 58Y
Migrant language training of the employee or of an associateApplies for existing or intending migrants not visitors58M and 136(1)
Minor benefitsA 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 phoneMobile phone primarily for use in the employee's employmentSection 58X
Newspapers and periodicalsFor 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 benefitSection 136(1) "fringe benefit" (q)
Otherwise deductible expensesA 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 directlySection 24, No private use declaration - expense payments
Participation in an approved student exchange programApplies to State or Commonwealth registered student exchange programsSection 58ZB
Portable printerPortable printer primarily for use in the employee's employmentSection 58X
Private company (s 109D) loans not deemed dividend because of s109NBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (s)
Protective clothingAn item of protective clothing primarily for use in the employee's employmentSection 58X
Quit smoking programA quit-smoking moking orogram falls under Section 58M (work-related counselling)Section 58M, ATOID 2001/543
Recreational and child care facilitiesLocated on the business premisesSection 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 areaThe 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% reductionSection 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 areaThe 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 considerationThe 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 transportThe 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 transportSection 61A
Reduction: Taxable value of an expense payment fringe benefit is reduced by the entertainment cost percentage applicable to a third partyThe 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 amountThe 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 providedSection 63
Reimbursement of car expensesReimbursement 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 consultantUnder an arms-length arrangement to provide assistance to relocate for employment purposesSection 58AA
Relocation removal and storage of employee's household effectsRemoval and storage of household effects associated with a requirement to relocate for employment purposesSection 58B, IT 2614
Relocation transportTransport, accommodation or meals because of an employee's relocation for employment purposesSection 58F,143A, IT 2614
Relocation transport (employee's car) reimbursed at approved set km rateApplies to travel to a new employment location or on return; Employee Declaration requiredSection 61B
Relocation: Incidental expenses of the acquisition or sale of a residential propertyRelevant 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 definitionThere a a number of FBT concessions applicable to employees in remote areas. The definitions of applicable areas see: Remote areas
Remote area housingAccommodation 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 exemptSection 47A, 45, No private use declaration
Safety awardsAnnual limit of $200 notional taxable valueSection 58R
Salary or wagesBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (f)
Smart watchAs ruled by the ATO, smart watch used in a way similar to a smart phone may be considered a portable electronic deviceSection 58X and see private ruling 1051394401249
Superannuation benefitsBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (k)
Taxi travelA Single trip to or from work or as a result of sickness or injurySection 58Z
Temporary accommodation relating to a relocation of employment, subject to time limitsFor detailed rules see: ATO - Relocation – temporary accommodation; Employee Declaration requiredSection 61C
The residual benefit which is the regular transport of remote location or oil rig employees between home and workExemption 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 tradeExempt if primarily for use in the employee's employmentSection 58X
Transport between home and work provided by an employer which is a public transport providerExcludes air travel and salary packaging arrangementsSection 47(1)
Transport connected with employment interview or selection testTransport, meals or accommodation to attend an interview or selection test regarding an application for employment, a promotion or job transferSection 58A,143D
Travel - compassionate purposesIncludes 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 locationSection 58LA
Travel costs associated with Section 58M benefitsSection 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 excludedSection 58M
Travel for the sole purpose of medical treatment while employed overseasIncludes transport, accommodation or meals, and necessary accompanying family members who live with the employee - subject to a number of detailed conditionsSection 58L
Travel on public transport between home and work for police service employeesExemption covers travel between place of residence and primary place of employmentSection 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 requiredSection 61E
Travel reimbursement at the basic car rate per km of car travel in respect of employment interviews or selection testsEmployee Declaration requiredSection 61F
Unused annual leave paymentBy the definition of "fringe benefit", is not a fringe benefitSection 136(1) "fringe benefit" (le)(i)
Unused long service leave paymentBy the definition of "fringe benefit", is not a fringe benefitSection 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 capacityAny private use must be minor, infrequent and irregularSection 47(6) See also FBT exempt motor vehicles
Use of an unregistered motor vehicleThe motor vehicle must be used wholly or principally in connection with the employer's business operations, and be unregistered for the whole yearSection 47(6A)
Use of employer's propertyUse 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 costsRelocation costs of connecting or reconnecting gas, electricity or telephone within 12 months of changing residenceSection 58D, IT 2614
Work-related counselling of the employee or an associateScope 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 matter58M and 136(1)
Work-related medical examination of the employeeMust be principally work related58M and 136(1)
Work-related medical screening of the employeeMust be principally work related and available to all employees at risk of work-related trauma.58M and 136(1)
Work-related preventative health careMust be work related and available to all employees at risk of work-related trauma.58M and 136(1)
See also FBT checklistsFBT checklists

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This page was last modified 2018-12-06