Fringe Benefit Tax

Fringe Benefit Tax (FBT) is a tax employers pay on certain non-cash benefits provided to their employees, such as company cars, health insurance, or accommodation. Essentially, while these benefits are part of employee compensation, they are taxed separately from salary. The FBT is calculated based on the value of these benefits and paid annually to the government, ensuring that non-monetary perks are taxed fairly. This system helps create a balanced tax structure where both cash and benefits are subject to appropriate taxation.