The ATO defines ‘Fringe Benefit’ as a type of payment given to an employee, which is not in the form of salary or wages. The Australian Taxation Office (ATO) requires Fringe Benefits Tax (FBT) to be paid by employers on certain benefits provided to their employees, or to their employees’ family or other associates. FBT is separate to income tax. It’s calculated on the taxable value of the fringe benefit.

What is a Fringe Benefit? v3