Non-reportable fringe benefits are a valuable way for employers to provide benefits to their employees without incurring additional tax liabilities, as these benefits aren’t subject to fringe benefits tax.
Employees also benefit, as non-reportable fringe benefits aren’t included in their taxable income.
Let’s explore some examples of non-reportable fringe benefits in Australia.
Adoption, Maternity & Paternity Assistance
This benefit supports employees taking time off from work due to pregnancy, childbirth, adoption, or caring for a newborn or adopted child.
Adoption, maternity and paternity assistance can take many forms.
- Paid parental leave
- Adoption leave
- Childcare support
- Flexible work arrangements
To be considered a non-reportable benefit, the assistance must be provided as part of your employment, not as a reward or gift.
Additionally, the value of the assistance must not exceed a certain limit determined by the Australian Taxation Office (ATO) each year.
On-Premises Meals
On-premises meals are meals an employer provides to employees on business premises or at a venue that the employer operates.
To be considered a non-reportable benefit, the meals must meet certain conditions.
As an employer, you must provide such meals to your employees during their working hours or while travelling for work.
You must also provide these meals as part of your employee’s employment, not as a reward or gift.
Additionally, the value of the meals must not exceed a specific limit determined by the ATO each year.
On-Premises Car Parking
The on-premises car parking benefit is a non-reportable fringe benefit when an employer provides car parking to employees on their business premises or at a location the employer operates.
As an employer, you must provide said on-premises car parking to your employees during their working hours or while travelling for work, and as part of their employment, not as a reward or gift.
Further, to be considered a non-reportable benefit, on-premises car parking must not be provided in a commercial car park, such as a shopping centre car park.
Also, you must not lease the car parking from a commercial car park operator.
Entertainment Facility Leasing Benefits
When an employer leases an entertainment facility to employees on their business premises or at a location owned or leased by them, this is considered a non-reportable entertainment facility leasing benefit.
As an employer, you can provide entertainment facility leasing to your employees for entertainment purposes only.
You cannot use the facility to generate income or profit, such as renting it out to external parties.
Remote Area Housing Assistance
Remote area housing assistance is a non-reportable fringe benefit that an employer can provide to employees required to live in remote areas for work purposes.
To be considered a non-reportable benefit, the remote area housing assistance provided to you by your employer must meet these conditions:
- You must be required to live in a remote area for work purposes, and your employer must demonstrate to the ATO that suitable housing is not available or that the cost of providing housing would be excessive.
- Any housing assistance provided to you must be in the form of accommodation or a housing allowance.
- The value of the remote area housing assistance provided must not exceed a certain limit determined by the ATO each year.
- The remote area housing assistance must be provided as part of your employment, not as a reward or gift.
Do You Need Help Recognising Non-Reportable Fringe Benefits?
If you need help recognising non-reportable fringe benefits or ensuring compliance with tax laws and regulations, speak to the experts at Pherrus Financial Services.
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Alternatively, call us to book an appointment at our Bella Vista office in Sydney, NSW.
