FBT exemptions during emergencies


FBT exemptions during emergencies

Flor- Hanly - Sunday, March 10, 2019

FBT exemptions for employers during emergencies

With parts of Australia currently experiencing flooding, bushfires and other severe weather events, tax may be the last thing on your mind.  

floodBut it's reassuring to know that when employers help their employees in an emergency situation, certain benefits provided are exempt from fringe benefits tax (FBT).

This exemption applies when employers help employees affected by emergencies or similar events including:

  • natural disasters
  • accidents
  • serious illness
  • armed conflict
  • civil disturbances
Examples of benefits exempt from FBT include immediate relief the employer provides to an employee in the form of:

  • emergency meals or food supplies
  • clothing, accommodation, transport or use of household goods
  • temporary repairs, for example on the employee's home or car. Long-term benefits are not exempt from FBT, such as providing a new house or car to replace one destroyed in the emergency event.
First aid or other emergency health care an employer provides their employee is also exempt if it is provided by an employee (or a related company employee), or is provided at your premises (or those of a related company), or at or near an employee's worksite.

For example the FBT exemption for first aid and other emergency health care applies to emergency treatment by a company doctor at the site of the emergency or accident, but won't apply if an employer pays for an employee's ongoing medical or hospital bills.

To discuss your circumstances, phone the team at Flor-Hanly Accountants in Mackay on 07 4963 4800.

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