Helping your employees in the event of an emergency

Benefits that you provide to your employees, such as loaning them a car for their private use or non-work-related hotel stays would, in normal circumstances, be considered fringe benefits and therefore subject to fringe benefits tax (FBT).

In the event of emergency situations such as natural disasters however, providing immediate relief to employees who are impacted (or potentially impacted) is exempt from FBT where assistance is provided for:

• An accident
• Serious illness
• Armed conflicts
• Civil disturbances
• Emergency meals, food supplies, clothing, accommodation, transport or use of household goods
• Temporary repairs
• First aid or emergency health care
   

It is important to note though, that there are specific requirements when it comes to providing health care, and exemptions don’t apply to any long-term benefits such as providing a new house or car which replaces one destroyed as a result of an emergency.

The Australian Tax Office provides an emergency hotline if you or your business has been affected by a natural disaster to help you get your tax back on track. This is 1800 806218.

Call in at your local TaxAssist Accountants for help and advice on any of the above.

Date published 28 Feb 2020

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.