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Fringe Benefits Tax (FBT) Accounting Advice

Fringe Benefits Tax (FBT) incentives are a powerful way to attract and motivate employees and drive long-term retention for employers.

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Employer fringe benefit tax obligations

Fringe Benefits Tax (FBT) is tax that is payable by an employer for benefits that are afforded to employees that do not fall into the traditional category of salary, wages, or bonuses. West Australian businesses that have employees (including sole director companies) may be required to register for FBT if employees are being paid or ‘given’ benefits that are not exempt from fringe benefits tax.


Some items such as mobile phones, laptops, tablets, uniform, or tools required to perform a job may not be subject to FBT. However, for items that are deemed to be a fringe benefit of the role, they may be subject to FBT. Business that fail to comply with FBT regulations may be subject to penalties and fines.

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What is considered a fringe benefit?

Fringe benefits are generally considered to be perks of the role that fall beyond the scope of salaries and bonuses and are intended to incentivise employees. Some of the most common types of fringe benefits include:


·  Vehicles for personal use under a novated lease agreement

·  Discount on loans or other financial products

·  Gym memberships and health benefits

·  Private health insurance (paid or partially subsidised)

·  Subsidised childcare costs

·  Subsidised entertainment or holiday expenses

·  Subsidised housing or rental agreements


Items that you need to do your job such as a company car or mobile phone may considered a “perk” but by virtue of the fact that they are necessitated to perform your job, they are not deemed to be a fringe benefit.

Our Accreditations & Awards

Certified Chartered Accountants

Tax Practitioners Board Registered

Certified Chartered Accountants

We are chartered accountants recognised through our membership to Chartered Accountants Australia and New Zealand (CA ANZ). As registered Chartered Accountants, we are “Difference Makers” with a complete range of skills and expertise that goes beyond basic accounting certification.

Xero Bronze Partner

Tax Practitioners Board Registered

Certified Chartered Accountants

Our work across multiple accounts has afforded us Xero Bronze Partner status, which entitles us to all of the software and support given to Xero partners. Our Xero Bronze Partner status provides our clients with enhanced support and access on the accounts that we manage. 

Xero Certified Advisor

Tax Practitioners Board Registered

Tax Practitioners Board Registered

Our Xero Certified Advisor status means that we are certified to provide accounting and bookkeeping services on the Xero platform for our clients. Gaining and maintaining certification reflects our expertise on the Xero platform and ensures we deliver the best service to our clientele.

Tax Practitioners Board Registered

Tax Practitioners Board Registered

Tax Practitioners Board Registered

We are Tax Practitioners Board Registered. This certification shows that MKM Accountants are members of the independent regulatory board in Australia that is responsible for registering and regulating all tax agents and Business Activity Statement (BAS) agents. 

Contact Us

Phone Number: (08) 8911 0969

Email: admin@mkmaccountants.com.au

Where We Service:

Perth, Western Australia, Australia

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