It sounds strange, but the FBT law is full of exemptions.
The FBT law was introduced way back in 1986 with the intention to tax non-cash fringe benefits. In doing so, the law has allowed for exclusions, concessions, reductions and exemptions.
Many employers are not fully aware of the extent of the FBT exemptions and the opportunities these may present as part of remuneration, reward, policy or salary packaging strategies.
In this blog we will focus on the FBT exemptions.
Firstly, we have exemptions specific to employer types. Included in the list of exempt employers are Religious Institutions, followed by Public Benevolent Institutions, Health Promotion Charities, some Hospitals and Public Ambulance Services. These latter employers can provide benefits to their employees exempt from FBT, subject to threshold levels.
The FBT law prescribes 13 categories of fringe benefits. FBT exemptions apply within some of these categories. Here are some examples:
- Cars – exemption may apply to motor vehicles with a carrying capacity of less than one tonne and not specifically designed to carry passengers
- Cars – exemption for motor vehicle running costs
- Car parking – small businesses, public educational institutions, scientific institutions and religious institutions may be eligible for exemption
- Entertainment – on premises entertainment and entertainment that is defined as a minor benefit, may be eligible for exemption
- Property – small value gifts may be eligible for exemption
- Residual – exemption may apply to motor vehicles with a carrying capacity of greater than one tonne
A number of exemptions are available in relation to employee health, welfare and well-being, including:
- In-house health care facilities
- Work-related medical examinations
- Work-related preventative health care
- Work-related counselling
- Compassionate travel
The FBT law recognises the need for employees to move locations to take up employment or to continue employment with a range of exemptions, including:
- Relocation consultant costs
- Home sale or acquisition benefits
- Removal and storage of household effects
- Connection and reconnection of certain utilities
- Leasing of household goods
- Relocation Transport
Finally, the FBT law provides exemption for employees who encourage a safer work environment and exemption for loyalty by long service.
There are many more FBT exemptions but the above helps to give a flavour of the extent and breadth of the available exemptions.
To further understand how and when the many FBT Exemptions and Concessions operate and the requirements for each, register for the FBT 2017: Exemptions and Concessions webinar.