It’s important to understand what a fringe benefit is before you explore whether the minor benefit exemption could apply to benefits you provide to employees.

A fringe benefit is like a payment to an employee but in a different form to salary or wages.

There are different types of fringe benefits. Examples include:

• allowing an employee to use a work car for private purposes
• car parking
• paying an employee's gym membership
• providing entertainment by way of free tickets to concerts
• reimbursing an expense incurred by an employee, such as school fees
• giving an employee a discounted loan
• giving benefits under a salary sacrifice arrangement with an employee.

The following are not fringe benefits:

• salary and wages
• employer contributions to complying super funds
• shares or rights provided under approved employee share acquisition schemes
• employment termination payments (including, for example, the gift or sale at a discount of a company car to an employee on termination)
• payments deemed to be dividends under Division 7A
• benefits provided to volunteers and contractors
• exempt benefits, such as certain benefits provided by religious institutions to their religious practitioners.