4. Withholding on benefits in kind
4.1 Fringe benefits tax
The Federal Government introduced a taxation regime targeted specifically at non-cash remuneration provided to employees (or their associates), with the introduction of the Fringe Benefits Tax Assessment Act 1986 (FBTA).
The legislation contains a complex set of rules that prescribe how a fringe benefit is identified and the 'taxable value' of that benefit. A flat tax rate of 47 per cent is levied on employers on the taxable value of any fringe benefits provided to employees.
Subsection 136(1) of the FBTAA contains an extensive definition of a fringe benefit, including
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