McKern News

FBT exemption on Minor Benefits...

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Did you know that you can provide certain non-cash remuneration to employees and their associates without attracting Fringe Benefits Tax? Benefits provided such as entertainment, meals, gifts, etc. may qualify as an exempt minor benefit if:

  • It would be considered unreasonable to treat the benefit as a fringe benefit

  • The benefit and similar benefits are provided infrequently and irregularly

  • The notional taxable value of the benefit is less than $300 (inclusive of GST)

  • The notional taxable value of the benefit can be calculated easily

Please note that a benefit cannot be treated as a minor fringe benefit if it is provided to an employee of an income tax-exempt organisation or if the 50/50 split method is used to calculate the taxable value of a meal entertainment benefit.

If you believe you may be eligible for this exemption or you would like further information, please contact your client manager.

This article was written by Tina, a Senior Accountant at our Burleigh Office. Tina is very family oriented and especially loves spending time with her gorgeous nieces and nephews. In her spare time she also enjoys reading and barbeques with good friends.