Fringe benefits tax (Australia)

For example: A company car, private health care, fitness club membership, phone or internet service reimbursement, etc.

Fringe benefits can be given to current, former, or future employees or a member of their family, a trustee, or a director.

[4] For the FBT year ending 31 March 2015, Fringe Benefits Tax will be payable by the employer at a rate of 47%, which represents the highest marginal income tax rate (45%), plus the Medicare levy as increased on 1 July 2014 (2%).

Since 1995 rules had allowed high-salaried individuals to get a laptop computer almost for nothing by purchasing such equipment via salary packaging.

The employee could then claim depreciation on the equipment, usually over a three-year period, on their personal tax return.

From May 2008, the FBT exemption was removed for laptops or other technology items under salary packaging rules.

The Budget included proposed changes to the Meal Entertainment and Holiday Accommodation/Venue Hire benefits with an introduction of an annual Capped amount.