FBT on home phone and internet expenses
24 July 2019
FBT on home phone and internet expenses
An expense payment fringe benefit may arise when an employer pays a third party or reimburses an employee for their home phone and internet expenses.
Working out the taxable value
To work out the taxable value of the fringe benefit, you'll need to know:
the amount the employee is reimbursed by the employer or the amount the employer pays a third party
the percentage of the business use of the phone and internet the employee would otherwise be entitled to claim as an income tax deduction, to reduce the taxable value.
Record keeping
There are different record-keeping requirements, depending on the amount the employer pays or reimburses an employee for their home phone or internet expenses during the fringe benefit tax (FBT) year.
Where the payment or reimbursement of home phone or internet costs:
is up to $50
the employee will need to provide a declaration to the employer detailing the percentage of business use
exceeds $50
both the employer and the employee must keep records of the actual expenses and
the employee will need to provide their employer with a declaration detailing the percentage of business use and the purpose of incurring the expense.