Fringe Benefits Tax (FBT)

The Fringe Benefits Tax (FBT) Act 1986 provides that where the University (or a third party under an arrangement with the University) pays for or reimburses extended travel for an employee, FBT is payable where the primary purpose of the trip was not to conduct business. 

Any private travel must be noted in the online travel approval request and potential FBT implications of any private travel will be calculated and provided to the employee through the completion of the travel approval request.  The employee is liable for any FBT costs associated with any private travel.

Students are not considered employees and therefore are exempt from FBT. However, if a student is being paid by the University (i.e. is on the University payroll as a casual, part-time or fixed-term employee) and is travelling on university business, then the individual is considered an employee and will be liable for the FBT costs associated with the private travel.

If you have any questions regarding FBT or would like further information, please reach out to the University Tax Unit.