Fringe Benefit Tax is a tax on alternative forms of remuneration which a business might opt to pay to its employees in lieu of a salary.
Typical examples include entertainment related expenses, mobile phone allowances, a car allowance, meal allowance or travel allowance. FBT must be paid on most of these allowances because they are regarded as being a different form of income. Discounts on company products and services also apply as taxable fringe benefits. Much like an income tax return, these benefits must be submitted by every business to the Australian Taxation Office.
Some allowances are not taxable and normally apply to not for profit organisations.