Fringe benefits tax (FBT) is a tax employers pay on certain benefits provided to their employees, employee family members or associates. The benefit may be in addition to, or part of, their salary or wages package. Fringe benefits tax is separate to income tax and is calculated on the taxable value of the fringe benefits provided. Simply choosing not to claim a tax deduction for an expense does not automatically remove the FBT liability in relation to the expense.
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