Hi There,
I am wondering if a company with a $12 million turnover supplies an employee and her family to a holiday costing $3500 inclusive would this be classed as a residual fringe benefit?
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Hi @EMM1991
It would depend on the company and how the holiday is provided.
If the holiday is entertainment by recreation and meals, and accommodation, for example, it will be a few types of benefits: property, expense, and/or residual.
If the holiday is a part of the company's business, it would be an in-house benefit.
If the holiday was purchased by the employee and then reimbursed by the employer, it's an expense payment benefit. But if the employee purchased it from the company's business and was reimbursed, it's an in-house expense benefit, which has slightly different rules.
Take a look at our FBT guide for employers page for entertainment and fringe benefits.
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Hi @EMM1991
It would depend on the company and how the holiday is provided.
If the holiday is entertainment by recreation and meals, and accommodation, for example, it will be a few types of benefits: property, expense, and/or residual.
If the holiday is a part of the company's business, it would be an in-house benefit.
If the holiday was purchased by the employee and then reimbursed by the employer, it's an expense payment benefit. But if the employee purchased it from the company's business and was reimbursed, it's an in-house expense benefit, which has slightly different rules.
Take a look at our FBT guide for employers page for entertainment and fringe benefits.