Member Q&A – Lucky door prize won by an employee!

Question If a staff member attends a third party conference and wins a lucky door prize to the value of $1,000 (entry was based on providing a feedback form for the conference), would this need to be declared as a gift and subject to FBT as being over the $300 minor benefit threshold? Answer It … Read more

Employer paid or reimbursed road and bridge tolls – a bridge too far?

Where an employer pays/reimburses an employee’s road toll expenditure or allows the employee to use the employer’s electronic road toll tag, a fringe benefit may arise, depending on the particular usage of the vehicle. Payment/reimbursement of an employee’s road toll expenses is prima facie an expense payment fringe benefit. Use by an employee of an … Read more

Member Q&A – In-house therapeutic massage, is FBT relief available?

Question We are considering providing in-house therapeutic massage for all employees. Is this an exempt fringe benefit pursuant to the ‘work related preventative health care’ exemption? The preventative health care component will consist of: massage to reduce tightness in muscles and any incidence of sprain or strain and to educate individuals on how to avoid … Read more

Member Q&A – How do we classify private trips undertaken in a ‘workhorse’ vehicle that is carrying bulky equipment?

Question If an employee, who has full private use of a one tonne vehicle and who is required to carry bulky items (e.g. ladder, tools etc,) travels to various sites directly from his home, including during out of hours and on weekends, would those trips be eligible for home to work business travel? The various … Read more

FBT ‘workhorse’ exemption – can it apply on a part-year basis?

Every year we are asked some tricky questions during the FBT Roadshow series that require one to take a deep breath and think……’why didn’t I become a carpenter like I wanted to when I was a kid rather than an FBT specialist!’. One such question was the operation of the car/motor vehicle ‘workhorse’ exemption where … Read more

Categories FBT

Member Q&A – Does the timing of the reimbursement for a section 58X ‘eligible work related item’ impact which FBT year applies to the benefit?

Question An employee purchased a portable electronic device in March 2021 (the prior FBT year). However, we did not reimburse her until the 2022 FBT year. Can we apply the section 58X exemption in the 2022 FBT year? Answer The provision that exempts certain work-related items – section 58X of the FBT Act – reads … Read more

Member Q&A – Employer provided parking provided for 1 tonne or more load carrying vehicle – is there an FBT exposure?

Question One of our employees is provided with a fully maintained work 1 tonne or more load carrying vehicle. The employee commutes from home to work each day in this vehicle and parks at a commercial parking station within which we have some dedicated leased bays. Are we liable for FBT on this parking arrangement? … Read more

Categories FBT

Member Q&A – Meals provided at public event

Question We have a public event on our premises & provide light refreshments consisting of pizza, sandwiches, and non-alcoholic events. Would this constitute meal entertainment with FBT payable for employees that attend the event? The cost per head for the event is less than $300. We do not use the meal entertainment 50/50 valuation rules … Read more