Hi Crompton
Thanks for your post and Welcome to the Community Forum.
A fringe benefit (FBT) is something offered to an employee by their employer on top of their salary. It can be used to incentives and reward employees without increasing wages.
It must be non-cash incentives paid on top of the salary. Even if the benefit is provided by a third party employers must pay FBT, and Employees can exclude fringe benefits from their taxable income.
There are employee benefits that are subject to the Fringe Benefit Tax (FBT). These are, Holiday and vacation expenses; Educational assistance to the employee or his dependents; and, life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows.
And also Fringe benefits furnished to managerial and supervisory-level employees by the employer. And this benefits subject to FBT are no longer included in the employee's taxable income.
You can check on this Help Article: Reportable fringe benefit
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Cheers,
Cel