If an employer provides free (gifts and prizes), subsidised or discounted goods and services to its employees, FBT isn’t payable if you meet the requirements of the general employee exemption and maximum employer exemption.

There’s a $300 exemption per employee per quarter from paying FBT if you provide free (gifts and prizes), subsidised or discounted goods and services. However, if the value of the benefits for an employee goes over $300 for a quarter, the full value of the benefits is subject to FBT – the exemption isn’t deducted first.

The maximum exemption an employer can claim is $22,500 per annum.

If an employee pays for an employer’s expenditure and is reimbursed the same amount, there’s no FBT liability. [Source: ir409]

Disclaimer: This is not tax advice but for your information purpose only.

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