---
title: "Australia’s Fringe Benefits Tax: A Mid-Year Reminder for Global Payroll and Mobility Teams"
description: Mid-year is the perfect time for global payroll and mobility teams to review and ensure compliance with Australia’s Fringe Benefits Tax obligations.
---

[News and Insights ](https://www.activpayroll.com/news-articles)

# [Australia’s Fringe Benefits Tax: A Mid-Year Reminder for Global Payroll and Mobility Teams](https://www.activpayroll.com/news-articles/australias-fringe-benefits-tax-a-mid-year-reminder-for-global-payroll-and-mobility-teams)

 Written by [activpayroll](https://www.activpayroll.com/news-articles/author/activpayroll) | Nov 14, 2025 8:45:15 AM

As the [Australian Fringe Benefits Tax](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/how-fringe-benefits-tax-works) (FBT) year runs from 1 April to 31 March, now is the ideal time for global payroll and mobility professionals to assess the benefits being provided to employees and ensure compliance with FBT obligations.

#### What Is FBT and Who Pays It?

Fringe Benefits Tax is a tax paid by employers on certain non-salary benefits provided to employees or their associates. These benefits can include: 

Importantly, FBT is separate from income tax and is calculated on the grossed-up taxable value of the benefit. Employers - not employees - are responsible for paying FBT, even if the benefit is provided by a third party.

#### How Much FBT Is Payable?

The FBT rate is 47% of the grossed-up value of the benefit. For GST-inclusive benefits, the gross-up rate is 2.0802. For example, a gym membership costing AUD 1,100 (including GST) results in an FBT liability of approximately AUD 1,075.46.

#### What Should Employers Be Doing Now?

With half the FBT year behind us, global payroll and mobility teams should: 

#### Deductions and Credits

Employers can claim: 

#### Implications for Global Mobility

For globally mobile employees, benefits provided while on assignment in Australia may trigger FBT obligations. Employers should:

#### Final Thoughts

With the FBT year-end approaching in March, now is the time to act. A proactive mid-year review helps avoid surprises, ensures compliance, and supports strategic benefit planning for globally mobile workforces.

#### Australia - Global Insights

For further detailed guidance on payroll, employment law, and compliance in Australia, visit our  [Australia Global Insights](https://www.activpayroll.com/global-insights/australia)  on the  [activpayroll website](https://www.activpayroll.com/). 

#### Next Steps

If you would like to understand how FBT may impact your business or payroll processes, please get in touch. Complete our  [Contact Us](https://www.activpayroll.com/contact-us)  form, and a member of our expert team will be happy to assist with your queries.  

[View full post](https://www.activpayroll.com/news-articles/australias-fringe-benefits-tax-a-mid-year-reminder-for-global-payroll-and-mobility-teams)

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