Fringe Benefits Tax (FBT)

Fringe Benefits Tax (FBT) is a tax employers pay on certain non-cash benefits they provide to their employees, in addition to their salaries. These benefits can include things like company cars, health insurance, or subsidized meals. FBT ensures that these perks are taxed fairly, similar to regular income. The tax is calculated based on the value of the benefits provided and is paid by the employer rather than the employee. This system helps maintain equity in how different forms of compensation are taxed, making it a key aspect of workplace remuneration in many jurisdictions.