Fringe benefit tax on specific categories of benefits: Free, subsidised or discounted goods and services
Record keeping for goods, services and subsidised transport
On your FBT taxable value calculation sheet, you must list out the different types of fringe benefits, so you should keep separate records for:
- gifts and prizes
- subsidised or discounted goods
- subsidised or discounted services
- subsidised or discounted transport (for employers in the public transport business only).
Private use of employer owned or leased business tools will be exempt providing the following conditions are met:
- provided primarily for business use
- personal use is of a minor nature
- the cost price of each tool does not exceed $5,000
The exemption also applies to business tools given to employees who substantially work from premises other than those of their employer.
Primarily this will apply to laptops and cellphones however, there will be other instances depending on the nature of the employers business.
Within each of these categories, all your records must include:
- the date of the transaction
- the name of the employee receiving the benefit
- a description of the benefit provided
- the cost to the employee.
For specific categories, your records must also include:
- the cost to the employer, where the fringe benefits are goods
- the normal market price, where the fringe benefits are services
- whether the "on premises" exemption applied if the venue was that of another company in the same group when a 66% or greater common ownership exists with employer company
- the highest price charged to the general public, where the fringe benefits are subsidised transport.
The Fringe benefit tax guide (IR409) gives more information on the records you should keep.
Date published: 14 Oct 2004
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