andy chuksFringe benefit tax (FBT) is a tax on benefits that employees receive as a result of their employment, including those benefits provided through someone other than an employer. Parliament has passed the Taxation (Depreciation, Payment Dates Alignment, FBT and Miscellaneous Provisions) Bill.
Fringe benefits tax (FBT) is tax paid on certain benefits employers provide to their employees or their employees' associates in place of salary or wages.
FBT is levied on the employer, not the employee and will be levied irrespective of whether the benefit is provided directly to the employee or to an associate of the employee.
In Australia FBT is paid by the employer at a rate of 46.5%, which represents the highest marginal income tax rate (45%), plus the Medicare Levy (1.5%). This rate is applied to the "grossed up" taxable value less any contribution by the employee. 0024 November 2011