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Changes have been made to the FBT law relating to airline transport fringe benefits. Under these changes, there is no longer a separate category of fringe benefit for airline transport fringe benefits. Airline transport fringe benefits are now taxed under the in-house benefit provisions – that is, as expense payment, property or residual fringe benefits – and the way the taxable value is calculated has been changed.
The changes affect airline transport fringe benefits provided on or after 7.30pm AEST on the 8 May 2012.
For more information, refer to Reform of Airline transport fringe benefits.
End of find out moreItem H applies to some benefits you provide to airline and travel agent employees – where you provide free or discounted travel, subject to the stand-by restrictions that customarily apply to employees in the airline industry. If you do not provide the benefit subject to the stand-by restrictions, you value it as either an expense payment fringe benefit or a residual fringe benefit, depending on the circumstances.
Example: Calculate airline transport fringe benefits
A travel agent provides free air travel to an employee for their holidays during the FBT year – the value of this benefit was $2,500. Because the employer is a travel agent, they qualify for the 'in-house' concession of up to $1,000 per employee per year.
The travel agent shows this at item 23 as follows: