Fringe Benefits Tax is a tax on the benefits your employer provides you that are not in the form of salary or wages. Under Federal Legislation, benefits provided by your employer are not subject to PAYG tax, but FBT may be payable on the benefits. Once you reach the FBT cap, all future benefits will have FBT applied. For Queensland Government employees, the cost of any FBT will be your responsibility, including any liability that may be incurred as a result of salary packaging. To find out if you are eligible for the FBT exemption cap please review your employee information booklet. The current FBT rate is 49%.
Most benefits attract FBT, however, the FBT Act determines that certain items, such as superannuation, professional membership and work related travel are FBT exempt. This means that if you salary packaging these items no FBT is payable. Your employer policy details its FBT status and the items that are offered to you as part of your salary packaging benefits.
For more information about the benefits you are eligible for, please refer to your Employee Information Booklets and Benefit Item Fact Sheets which can be found here.
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