FBT and PBIs explained

What is FBT?

Any items provided by your employer which are not in the form of your normal salary are known as fringe benefits. Legally, they are still considered types of income – which is why they incur a tax known as FBT, or Fringe Benefits Tax. Any items you package are considered fringe benefits.

Only a handful of items actually attract FBT, and only a portion of the item value is taxed. It’s important to remember that the income tax savings will most likely still outweigh the Fringe Benefits Tax on that item – and we’re here to look after all the details for you.

The impact of FBT on public hospitals, private not-for-profit hospitals and Public Benevolent Institutions

Some organisations don’t have to pay FBT on certain items. These are public hospitals, private not-for-profit hospitals and Public Benevolent Institutes, or PBIs (which include some community care organisations, charities or medical research institutes).

This lucky lot are allowed to package certain items up to a capped dollar figure without incurring FBT at all.

Since all organisations in this category are not-for-profit, the government has given them a helping hand by allowing a greater tax saving to their employees.

A breakdown of what can be packaged by PBIs as well as by other organisations can be found at What can I package.