We have a dozen employees who receive a mobile phone allowance via payroll each fortnight for $11.54 to cover work related matters on their personal mobile phones. Is there any FBT obligations here if all staff have also been provided a laptop for WFH purposes (more than 1 substantially identical function)?
Hi @Mathew1975,
No, there are no FBT obligations for the mobile phone allowances you're paying to your employees. When a payment is made as an allowance through payroll, it's treated as extra salary or wages rather than a fringe benefit, so FBT doesn't apply.
Your employees will need to:
This would be different if the payment is a reimbursement. Where a mobile device reimbursement is provided to employees and the device is used primarily for work purposes, it will generally be exempt from fringe benefits tax. You don't need to track the employee's actual use as long as you make it clear to them the reimbursement covers the work portion.
However, if the mobile phone reimbursement isn't used primarily for work usage by your employees, you may have fringe benefits tax obligations. The fact that employees also have laptops doesn't automatically create FBT liability, each benefit needs to be assessed separately based on its primary use.
Thanks Damien,
In this instance the mobile phones are private personal phones so they mostly wouldn't be primarily used for work usage, so I'd say they may have FBT obligations. In this case would this be treated as an expense benefit? Is the Gross up rate type 2?
Hey @Mathew1975 - I'll jump in here.
Because you've said the payment is a cash allowance through payroll, it’s usually treated as salary/wages, not a fringe benefit.
FBT doesn't apply to the allowance itself.
FBT would only apply if you:
If the scenario above about FBT does apply to you, it’s likely an expense payment fringe benefit.
You'd need to work out the taxable value (generally the amount reimbursed or paid) and apply the gross‑up rate.
If you're still unsure, it might be worth speaking with a registered tax or BAS agent that specialises in this area.
Looking at this source:
Allowances for the phone is a work related allowance so it attracts PAYG not FBT but both laptop and phone are used in the example as FBT exempt IF the business is a small business.
Have a look and see if you read it the same?
15 Apr 2026 · 4 min read time
16 July 2025 · 5 min read time
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