Unclassified benefits and gift cards

You may need to pay fringe benefit tax (FBT) on benefits you give your employees, such as gift cards, free gifts or prizes, subsidised or discounted goods and services.

‘Unclassified’ means the benefits are not specifically listed in legislation or excluded from the FBT rules.

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About unclassified benefits and gift cards You may need to pay FBT when you provide goods or services to your employees at a price lower than the benefit’s value. This includes goods and services provided to your employees by someone else on your behalf.
Types of unclassified benefits and gift cards You may need to pay FBT on free, subsidised or discounted goods and services, gift cards, vouchers and entertainment benefits.
Exemptions and exclusions for unclassified benefits In some cases, you do not pay FBT on benefits or include them in your FBT return, but you still need to keep records.
Limits for FBT on unclassified benefits and gift cards You only pay FBT on unclassified benefits and gift cards once their taxable value is more than a certain amount, called a limit.