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FAQs on FBT

  1. What is FBT?
  2. What item codes do we use:
  3. When doesn't FBT apply?
  4. What expenses are FBT if I am taking a client out for dinner whilst travelling on University business?
  5. How do I process the FBT?
  6. What do I do if I'm in Adelaide having lunch with a client?
  7. What other items are FBT?

 

What is FBT?

Fringe Benefits Tax or FBT is a Commonwealth tax levied on most non-salary type benefits provided by employers to employees.

FBT is paid by UniSA not the employee.  FBT is charged on entertainment expenses associated with University business e.g. dinners with clients etc. FBT is also charged on other expenses where a University employee receives a benefit (see Sharon Olson, the salary sacrifice expert on motor vehicles which incur FBT).

What item codes do we use:

2970 Uni Premises Light Refreshments Meals provided to staff, associates and non-staff that is FBT exempt. To be used for meals related to work functions such as morning tea, afternoon tea or a light lunch held on Uni premises with a business connection. Includes expenses for food and drinks. Any alcohol served should form no more than a merely incidental part of the function. Includes any food or drink purchased as part of staff wellness program.
2971 Meal Entertainment - Staff & Assoc To be used for the staff and associates component of any expenditure relating to meal entertainment on which FBT applies. Social functions and entertainment such as lunches and dinners where any alcohol served forms more than an incidental part of the function. An associate of a staff member includes spouses, partners and family members. Includes expenses for food and drinks.
2972 Meal Entertainment - Non Staff Meals provided to non-staff that is `meal entertainment¿. To be used for the non-Uni staff component of expenditure relating to social functions and entertainment such as lunches or dinners. No GST may be claimed on these expenses. Includes expenses for food and drinks.
2973 Recreational Entertainment - Staff & Assoc To be used for staff and associates component of expenditure for recreational entertainment - amusement, sport and similar leisure time pursuits for example, a game of golf, theatre or movie tickets, a joy flight or a harbour cruise, Kartmania, skirmish and AFL football matches. An associate of a staff member includes spouse, partner or family member. Includes expenses for food, drinks, and any related transport or accommodation costs. Note that this is a reportable fringe benefit.
2974 Recreational Entertainment - Non Uni Staff To be used for non-Uni staff component of expenditure for recreational entertainment - amusement, sport and similar leisure time pursuits for example, a game of golf, theatre or movie tickets, a joy flight or a harbour cruise, Kartmania, skirmish and AFL football matches. Includes expenses for food, drinks and any related transport or accommodation costs.
2975 Seminars & Off Premises Training To be used for hospitality expenditure related to seminars, training sessions off Uni premises which are over four hours in length, as well as light refreshments at short training sessions (PD or business related). Examples include Division planning days and two day conferences. Includes expenses for food and drinks.
2976 Staff Private Costs/Gifts < $300 & Infrequent & Irregular Expenditure incurred in relation to staff gifts and staff personal/private costs costing less than $300 that is also not provided on either a frequent or regular basis. For example a bird bath at home, flowers, luggage replacement, passports. Does not include internet access provided at a staff member¿s home. Does not include gifts that are entertainment such as movie vouchers, theatre tickets or restaurant vouchers.
2977 Staff Private Costs/Gifts =>$300 Regular or Frequent or Ent Expenditure incurred in relation to staff gifts and staff personal/private costs costing more than $300 or more. For example a bird bath at home, flowers, luggage replacement, passports. It also includes benefits (regardless of cost) provided regularly (i.e. internet access at home) or frequently (for example a monthly massage provided to a staff member), and includes any benefits that are entertainment in nature (movie tickets or restaurant vouchers).

When doesn't FBT apply?

When food and drink is consumed by an employee whilst travelling away from home on University business provided it does not include any form of entertainment, and any alcohol consumed does not exceed a reasonable amount.

What expenses are FBT if I am taking a client out for dinner whilst travelling on University business?

The bill will need to be split in two portions - the expenses for the employee and the expenses for the client.

How do I process the FBT?

When applying for either a reimbursement or reconciling the payment (either on your Visa Card or cash advance via accounts payable), completing a FS71 Entertainment Expenditure form will assist you in distinguishing the different costs.

What do I do if I'm in Adelaide having lunch with a client?

The bill will need to be split in two portions - the non-FBT expenses for the client - using item codes 2972 etc and the FBT expenses for the employee - using item code 2971.

What other items are FBT?

There are a range of specific FBT rules that apply tax to some items and exempt others. 

For example, most entertainment related expenses (regardless of value) will be subject to FBT, and this includes:

Desktop computers will always be subject to FBT, whilst Laptop computers may be exempt (depending on satisfying specific criteria).

Study courses that are HECS-HELP Supported will always be subject to FBT.

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