What is FBT (Fringe Benefits Tax)?
Tax-specific. A plain-English definition for Australian business owners.
FBT is a federal tax on certain non-cash benefits employers provide to employees or their associates — typically motor vehicles, car parking, entertainment, and certain reimbursements.
The FBT year runs 1 April to 31 March (different from the financial year). The tax is calculated at the top marginal rate plus Medicare levy on the gross-up value of the benefit. FBT exposure often surprises growing SMEs that haven't structured their employee benefits with FBT in mind.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
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General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.