Article

FBT Q&A – Are paid days over the shutdown period subject to FBT if the staff aren’t required to take annual leave?

Question

Our organisation has decided that the days during our holiday shutdown period that are not public holidays days (four days) will be paid days that will not require use of annual leave. This is a gesture of good will to recognise that 2018 has been a particularly challenging year and will not set a precedent in relation to the holiday period closure in future.

Entitlement for paid days that do not require the use of annual leave is limited to ongoing and fixed-term staff (pro-rata for part time staff). Casual and sessional staff are not entitled to be paid for this period.  Will this incur FBT?

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Disclaimer: This article is based upon information available as at the time of publishing and may be subject to change.