Fringe Benefits Tax (FBT)
A tax on the extra benefits, such as a vehicle, provided to employees by their employer as a part of their salary package.
Fringe benefits can potentially help employees reduce their income tax by reducing the dollar amount of their salary. Although the employer is responsible for actually paying the FBT, most will recover it from the employee through the salary packaging arrangement.
To find out more, talk to your HR department and your accountant.