Are you providing rapid antigen tests and other COVID-19 related benefits to employees?

Business owners providing benefits in addition to salary or wages because of COVID-19 need to check if fringe benefits tax could apply.

Although you may be providing various benefits to create a safe workplace and support employees, you may be inadvertently liable for fringe benefits tax.

Track COVID-related benefits paid for by the business

  • COVID-19 PCR and RAT testing
  • Work from home equipment
  • Work vehicles that are garaged at employees’ homes
  • Vaccination incentives
  • Travel or accommodation costs
  • Protective gear
  • Emergency health care

If you pay for COVID-related services for employees, you’ll need to track them in your accounting system to make it easy to determine if you have an FBT liability and if you should report any amounts on employees’ end of year income statements.

The minor benefits FBT exemption may apply for many or all of the benefits you have provided to employees. Still, we’ll need to review your records to ensure that you’re not going to get a surprise bill from the ATO down the track!

Unsure if FBT applies to your business?

FBT is a complex area of tax law, and there are specific tests that must be satisfied to be exempt from FBT.