Normally, benefits you provide to your employees such as non-work-related hotel stays or loaning them a car for their private use would be considered fringe benefits, and subject to fringe benefits tax (FBT).
However, in emergency situations like natural disasters, providing immediate relief to employees who are impacted (or potentially impacted) is exempt from FBT where the assistance is for:
- first aid or emergency health care
- emergency meals, food supplies, clothing, accommodation, transport or use of household goods
- temporary repairs
- any similar matter.
These exemptions also apply where your employee has been affected by:
- an accident
- serious illness
- armed conflicts
- civil disturbances.
There are specific requirements when it comes to providing health care, and exemptions don’t apply to long-term benefits like providing a new house or car to replace one destroyed as a result of an emergency.
If you or your business are affected by a disaster we understand tax is the last thing on your mind right now. We have a hotline you can call for assistance in getting your tax back on track once the emergency has passed.
Your registered tax agent or BAS agent can also help you.
If you need any help with your business tax obligations, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261