Personal use of business assets as an employee

Fringe Benefits Tax is separate to income tax and is calculated on the taxable value of the fringe benefit. 

If the business 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 business 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.

As an employee of the business - you don’t need to report the value of fringe benefits that you (or your associate) receive in your individual tax return, unless they are included as reportable fringe benefits on your payment summary or income statement.

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 business 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.