Reviewing Fringe Benefits Tax Basics

Australia requires that companies pay a Fringe Benefits Tax (FBT) for specific expenses. For example, when an employee takes a business guest to lunch and expenses the meal, the meal becomes a fringe benefit to the employee and may be taxable.

Please note that other countries also have forms of FBT, but those are not supported in SAP Concur.

FBT is levied on entertainment and non-salary benefits including, but not limited to the following:

• Meal-related entertainment
• Gifts over 300 AUD or frequent gifts
• Company car
• School fees
• Child care

Goods and Services Tax (GST) is not reclaimable on the Business Guest portion of the expense. The FBT module in SAP Concur achieves this by capturing the cost for the business guest at the attendee level and resetting the GST reclaim portion for guests to zero. You can only reclaim GST for staff and spouses.

Now that you know a little bit about what FBT is and what effect it can have on your business, let's take a look at some important details about FBT and SAP Concur.