As a beneficiary if you are employed by the trustee and have the use of business assets for personal use or you are using trust money to pay for personal benefits the trust may have Fringe Benefits Tax obligations.
Fringe Benefits Tax is separate to income tax and is calculated on the taxable value of the fringe benefit.
If the trust is paying for these types of benefits it might need to lodge a Fringe Benefits Tax return and pay any Fringe Benefits Tax liability it may have. The trust can generally claim an income tax deduction for the cost of providing fringe benefits and for the Fringe Benefits Tax it pays. It can also generally claim GST credits for items provided as fringe benefits.
The ATO website has more information about which benefits Fringe Benefits Tax applies to. If you are using business money to pay for these benefits for yourself or the trustee is considering providing fringe benefits to its other employees, it’s recommended that you talk with your tax adviser or contact the ATO to make sure you are setting it up correctly and are not overpaying tax.
