Why fringe benefits tax

Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. Commonwealth Bank is also not a registered tax financial adviser under the Tax Agent Services Act and you should seek tax advice from a registered tax agent or a registered tax financial adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

Hamburger Menu Dialog Open. CommBank Search. Dialog start. Search CommBank. Start typing…. Popular searches. Quick guide to fringe benefits tax FBT Fringe benefits can help you both enjoy some job perks, and, depending on your personal circumstances, reduce your taxable income.

What are fringe benefits? Related articles. Taxes Income Tax. Table of Contents Expand. Taxable Fringe Benefits. Excluded Fringe Benefits. The Bottom Line. Key Takeaways Fringe benefits are perks and additions to normal compensation that companies give their employees, such as life insurance, tuition assistance, or employee discounts.

If a fringe benefit is transferred as cash, such as a bonus or reimbursement for travel or other expenses, they are likely to be subject to income tax. Benefits received in-kind, or considered de minimis are usually not subject to taxation. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear.

Investopedia does not include all offers available in the marketplace. Related Articles. Partner Links. Related Terms Fringe Benefits: The Ins and Outs Fringe benefits are additions to employee compensation, such as paid time off or use of a company car.

Some benefits are taxable as income. What Is Remuneration? Remuneration is an employee's total compensation, including base salary, bonuses, expense account reimbursements, and other financial benefits.

What is a non-accountable plan? A non-accountable plan is a way to provide employees with an allowance for business expenses or travel that does not need to be justified to an employer.

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