Types of fringe benefits

There are 5 main types of fringe benefits. 4 types of fringe benefits are classified in legislation and the other type is unclassified benefits. The types classified in legislation are:

motor vehicles available for private use
low interest/interest free loans
free, subsidised or discounted goods and services
employer contributions to sick, accident or death benefit funds, superannuation schemes and specified insurance policies (excluding employer contributions to superannuation schemes liable for ESCT (formerly SSCWT).

You need to work out the taxable value, the actual cost to be able to calculate fringe benefit tax. How you work this out depends on the type of fringe benefit and who you give it to.

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Employer contributions to employee funds You may have to pay fringe benefit tax if you contribute to an employee's benefit fund, insurance policy, superannuation scheme or funeral trust.
Employer provided goods and services You may have to pay fringe benefit tax if you provide free, subsidised or discounted goods and services to an employee.
Employer provided low interest loans You may have to pay fringe benefit tax if you provide an employee with a loan at an interest rate that is lower than you would offer the public.
Employer provided motor vehicles for private use You may have to pay fringe benefit tax (FBT) if you make a motor vehicle available to employees for them to use privately even if they do not actually use it.
Employer provided unclassified fringe benefits Unclassified fringe benefits are all benefits provided by employers that are not specified in legislation, for example employment-related gifts, subsidised goods and certain public transport benefits.

Ngā momo painga tāpiri Types of fringe benefits

Types of fringe benefits