Expense Payment Fringe Benefit

An expense payment fringe benefit may arise in either of two ways:

  • Where an employer reimburses an employee for an expense they incur.
  • Where an employer pays a third party for an expense the employee has incurred.

In determining the correct gross up rate to use for FBT calculation purposes you may categorise expense payment fringe benefits into Type 1 GST Expenses and Type 2 GST Free Expenses.

Type 1 – GST Expense Payment Fringe Benefits

  • Car expenses
    • Fuel
    • Servicing / Maintenance
    • Tyres
    • Insurances
  • Life Insurance
  • Home & Contents Insurance
  • Groceries
  • Electricity/ Gas
  • Phone / Internet Expenses
  • Travel (International & Domestic)
  • Furniture
  • Appliances
  • Any other general expenses with GST

Type 2 GST Free Expense Payment Fringe Benefits

  • Home Mortgage Payments
  • Personal Loan Payments
  • Home Rental Expenses
  • Credit Card Repayments
  • Rates
    • Council
    • Water
  • Private Health Insurance
  • School Fees / Childcare
  • Vehicle Registration
  • Any other GST Free Expenses