Fringe benefit tax (FBT): Fringe benefit tax overview

Attributed income

For FBT purposes, cash remuneration includes any amount of income attributed under the attribution rule. The attribution rule applies where:

• a person providing services puts an entity (trust or company) between themselves and the person who receives those services (the recipient)
• the person providing the services and the trust or company are associated persons
• the company or trust receives the payment for the services performed by the service provider.

The attribution rule ensures that the net income (income after expenses) of the entity is treated as the gross income of the person providing the service.

The rule applies only in limited circumstances. For FBT purposes, when applying the multi-rate calculation process to attributed benefits received from the entity, cash remuneration includes the amount of any attributed income.

Other pages in: Fringe benefit tax overview

• FBT glossary
• Non-attributed benefits
• What is a fringe benefit?
• Fringe benefit tax
• Attributed benefits

Date published: 14 Oct 2004

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