{"id":"F2018L01284","name":"Fringe Benefits Tax Assessment Regulations 2018","slug":"fringe-benefits-tax-assessment-regulations-2018","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439771,"registerId":"F2018L01284-fast-fetch-1775955665112","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Fringe Benefits Tax Assessment Regulations 2018","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nFringe Benefits Tax Assessment Regulations 2018\n\nI, General the Honourable Sir Peter Cosgrove AK MC (Ret’d), Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations.\n\nDated 13 September 2018\n\nPeter Cosgrove\n\nGovernor‑General\n\nBy His Excellency’s Command\n\nStuart Robert\n\nAssistant Treasurer\n\n \n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Schedules\n\n5 Definitions\n\nPart 2—Excluded fringe benefits\n\n6 Excluded fringe benefit—health care services\n\n7 Excluded fringe benefit—Defence Force\n\n8 Excluded fringe benefit—police\n\n9 Excluded fringe benefit—car benefits\n\n10 Excluded fringe benefit—pooled or shared cars\n\n11 Excluded fringe benefit—various benefits to Commonwealth employees\n\n12 Car parking benefits—excluded car parking facilities\n\nPart 3—Variation of employer’s notional tax amount\n\n13 Variation of employer’s notional tax amount\n\nPart 4—Other matters\n\n14 Eligible car parking expense payment benefit\n\n15 Supplementary car rate\n\nPart 5—Application and transitional matters\n\n16 Application of this instrument etc.\n\nSchedule 1—Repeals\n\nFringe Benefits Tax Regulations 1992\n\n \n\nPart 1—Preliminary\n\n \n\n1  Name\n\n  This instrument is the Fringe Benefits Tax Assessment Regulations 2018.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument 1 October 2018. 1 October 2018\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under the Fringe Benefits Tax Assessment Act 1986.\n\n4  Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n5  Definitions\n\n  In this instrument:\n\nAct means the Fringe Benefits Tax Assessment Act 1986.\n\ncensus population has the same meaning as in subsection 140(3) of the Act.\n\nCommonwealth overseas living allowance means a payment by:\n\n (a) the Commonwealth; or\n\n (b) a Commonwealth entity, or Commonwealth company, within the meaning of the Public Governance, Performance and Accountability Act 2013;\n\nto compensate an employee for the additional living expenses of employment outside Australia.\n\nDepartment of Defence means the Department administered by the Minister administering the Defence Act 1903.\n\ndependant, of a member of the Defence Force, has the same meaning as in the Defence Determination 2016/19, Conditions of service.\n\nNote: The Defence Determination 2016/19, Conditions of service could in 2018 be viewed on the Federal Register of Legislation website (https://www.legislation.gov.au).\n\ndisabled persons’ car parking permit means a permit, label or other document:\n\n (a) issued by the appropriate authority in a State or Territory; and\n\n (b) authorising the parking of a car in a disabled persons’ car parking space.\n\ndisabled persons’ car parking space means a car parking space:\n\n (a) in a public car parking area; and\n\n (b) designated for the exclusive use of disabled persons.\n\neligible urban area has the same meaning as in section 140 of the Act.\n\nhousehold effects has the same meaning as in paragraph 58B(2)(a) of the Act.\n\nmedicare benefit has the same meaning as in the Health Insurance Act 1973.\n\nmember of the Defence force means a member of the Defence force to whom the Defence Force Discipline Act 1982 applies.\n\npermanent resident, of Australia, has the same meaning as in the Australian Citizenship Act 2007.\n\nPart 2—Excluded fringe benefits\n\n \n\n6  Excluded fringe benefit—health care services\n\n (1) Each fringe benefit covered by a subsection of this section is prescribed for the purposes of paragraph 5E(3)(i) of the Act.\n\n (2) A fringe benefit is covered by this subsection if:\n\n (a) the benefit is a payment to a person who provides an emergency or other essential health care service outside Australia; and\n\n (b) the payment is for the provision of an emergency or other essential health care service to an employee or an associate of an employee; and\n\n (c) the employee, or associate, to whom the service was provided is an Australian citizen or a permanent resident of Australia; and\n\n (d) the employee’s place of employment is outside Australia when the service was provided; and\n\n (e) a medicare benefit is not payable in respect of the service.\n\n (3) A fringe benefit is covered by this subsection if:\n\n (a) the benefit is reimbursement of a payment by an employee, or an associate of an employee, for the cost of an emergency or other essential health care service provided to the employee or associate outside Australia; and\n\n (b) the employee, or associate, to whom the service was provided is an Australian citizen or a permanent resident of Australia; and\n\n (c) the employee’s place of employment is outside Australia when the service was provided; and\n\n (d) a medicare benefit is not payable in respect of the service.\n\n7  Excluded fringe benefit—Defence Force\n\n (1) Each fringe benefit covered by a subsection of this section is prescribed for the purposes of paragraph 5E(3)(i) of the Act.\n\n (2) A fringe benefit is covered by this subsection to the extent that:\n\n (a) the benefit is assistance for the removal or storage of the household effects of a member of the Defence Force who is a resident of Australia; and\n\n (b) the member is directed to change residence by the Department of Defence; and\n\n (c) the removal or storage arises from the direction.\n\n (3) Each of the following fringe benefits provided to a member of the Defence Force who is a resident of Australia is covered by this subsection:\n\n (a) a housing fringe benefit;\n\n (b) a fringe benefit, to the extent that it relates to an accommodation expense in the form of rental allowance;\n\n (c) if the member is serving in Australia away from where the member’s dependants are located—a fringe benefit to the extent that it is for travel for reunion with those dependants at their place of residence;\n\n (d) a fringe benefit to the extent that it is assistance to the member:\n\n (i) in accordance with a determination made under section 58B of the Defence Act 1903; and\n\n (ii) in relation to support for families with special needs;\n\n (e) if the member has a child who is a student in year 9, 10, 11 or 12, or an equivalent year of schooling, away from where the member is serving—a fringe benefit to the extent that it is assistance for:\n\n (i) education in that year of schooling in accordance with a determination made under section 58B of the Defence Act 1903; or\n\n (ii) travel by the child for reunion with the member, or other dependants of the member, where the member is serving;\n\n (f) a fringe benefit to the extent that it is removal and travel assistance:\n\n (i) as a result of the breakdown of the member’s relationship with the member’s spouse; and\n\n (ii) if the member’s spouse is not a member of the Defence Force—for the spouse and the spouse’s accompanying dependants; and\n\n (iii) paid in accordance with a determination made under section 58B of the Defence Act 1903;\n\n (g) a fringe benefit to the extent that it is child tuition assistance for a child of the member if:\n\n (i) the member is directed to change residence by the Department of Defence; and\n\n (ii) the child must be enrolled in a different school because of the direction.\n\n8  Excluded fringe benefit—police\n\n (1) Each fringe benefit:\n\n (a) provided to a member (the member) of a police force or police service of the Commonwealth, a State or Territory; and\n\n (b) covered by a subsection of this section;\n\nis prescribed for the purposes of paragraph 5E(3)(i) of the Act.\n\nNote: Section 9 sets out other excluded fringe benefits arrangements that may be available relating to members of a police force or service.\n\n (2) A fringe benefit is covered by this subsection if:\n\n (a) the benefit is the application of a car, by the member, for travel between the member’s place of residence and a place where the member is required to carry out the member’s duties; and\n\n (b) the car is used by the employer of the member; and\n\n (c) the member has the car at or near the member’s place of residence to enable the member to respond to an event involving the possible commission of a crime or a possible threat to public safety; and\n\n (d) the car is fitted with:\n\n (i) a police radio, or a radio for use with the member’s duties; and\n\n (ii) concealed or portable warning lights; and\n\n (iii) concealed or portable sirens; and\n\n (e) the application of the car to a private use is taken to constitute a benefit within the meaning of subsection 7(1) of the Act.\n\n (3) A fringe benefit is covered by this subsection to the extent that:\n\n (a) the benefit is assistance for the removal or storage of the household effects of the member who is a resident of Australia; and\n\n (b) the member is directed to change residence by the police force or service that provides the benefit; and\n\n (c) the removal or storage arises from the direction.\n\n (4) A fringe benefit is covered by this subsection if:\n\n (a) the benefit is a housing fringe benefit; and\n\n (b) the housing to which the benefit relates is attached to or adjacent to a police station that is being used for that purpose; and\n\n (c) the member resides in that housing.\n\n (5) A fringe benefit is covered by this subsection if:\n\n (a) the benefit is an expense payment fringe benefit that is housing rent connected with a unit of accommodation; and\n\n (b) the member’s usual place of residence is at least 100 kilometres from an eligible urban area with a census population of not less than 130,000.\n\n (6) A fringe benefit is covered by this subsection if:\n\n (a) the benefit is the payment or reimbursement of costs incidental to the purchase of a new dwelling; and\n\n (b) the benefit is provided because the member is required to change their usual place of residence in order to perform the duties of the member’s employment; and\n\n (c) the new dwelling is purchased within 4 years after the member commences duties after the change.\n\n9  Excluded fringe benefit—car benefits\n\n  A fringe benefit is prescribed for the purposes of paragraph 5E(3)(i) of the Act if:\n\n (a) the benefit is the application of a car, by an employee, for travel between the employee’s place of residence and a place where the employee is required to carry out the employee’s duties; and\n\n (b) the car is covered by subsection 7(2A) of the Act; and\n\n (c) the application of the car to a private use is taken to constitute a benefit within the meaning of subsection 7(1) of the Act.\n\nNote: Subsection 7(2A) of the Act describes cars that are used by an ambulance service, a firefighting service or a police service, and that are marked and fitted for those uses.\n\n10  Excluded fringe benefit—pooled or shared cars\n\n (1) A fringe benefit is prescribed for the purposes of paragraph 5E(3)(i) of the Act if:\n\n (a) the benefit is a car fringe benefit; and\n\n (b) the car to which the benefit relates is applied to or available for the private use of more than one employee under subsection 7(1) of the Act.\n\nExample: An employer makes one car available to 3 employees, for private use, at different times during the year of tax.\n\n (2) The fringe benefit is so prescribed for each employee to whom the benefit is provided.\n\n11  Excluded fringe benefit—various benefits to Commonwealth employees\n\n (1) Each fringe benefit covered by a subsection of this section is prescribed for the purposes of paragraph 5E(3)(i) of the Act.\n\n (2) A fringe benefit provided to an employee of the Commonwealth is covered by this subsection if the benefit:\n\n (a) is a living‑away‑from‑home allowance fringe benefit; or\n\n (b) is an expense payment fringe benefit that:\n\n (i) is not exempt under section 21 of the Act; and\n\n (ii) relates to accommodation that is required solely because the duties of the employee’s employment require the employee to live away from the employee’s normal residence; or\n\n (c) is a residual fringe benefit that:\n\n (i) is not exempt under subsection 47(5) of the Act; and\n\n (ii) relates to accommodation that is required solely because the duties of the employee’s employment require the employee to live away from the employee’s normal residence.\n\n (3) A fringe benefit that is a payment of a Commonwealth overseas living allowance is covered by this subsection to the extent that the payment includes any of the following adjustments, allowances or supplements:\n\n (a) a cost of living adjustment;\n\n (b) a post adjustment;\n\n (c) a cost of posting allowance;\n\n (d) a child supplement;\n\n (e) a child supplement allowance;\n\n (f) a child reunion allowance.\n\n12  Car parking benefits—excluded car parking facilities\n\n  For the purposes of paragraph 39A(1)(h) of the Act, the provision of parking facilities for a car during a period referred to in section 39A of the Act is taken to be excluded from that section if:\n\n (a) the parking facilities are provided to an employee who:\n\n (i) is entitled under the law of a State or Territory to the use of a disabled persons’ car parking space; and\n\n (ii) is the driver of, or is a passenger in, the car; and\n\n (b) a valid disabled persons’ car parking permit is displayed on the car.\n\nPart 3—Variation of employer’s notional tax amount\n\n \n\n13  Variation of employer’s notional tax amount\n\n (1) For the purposes of item 4 of the table in subsection 110(1) of the Act:\n\n (a) this section provides for varying the notional tax amount of employers for the current year; and\n\n (b) the prescribed day is 1 April 2006; and\n\n (c) the amount worked out under item 1 of the table in subsection 110(1) of the Act for the employer is varied by applying the formula in subsection (2).\n\n (2) The formula is as follows:\n\n![](image.002.png)\n\nwhere:\n\nbase year rate of tax means the rate of tax, specified in section 6 of the Fringe Benefits Tax Act 1986, in respect of the employer’s fringe benefits taxable amount for the base year.\n\ncurrent year rate of tax means the rate of tax, specified in section 6 of the Fringe Benefits Tax Act 1986, in respect of the employer’s fringe benefits taxable amount for the current year.\n\nNote: For the base year and current year, see subsection 110(1) of the Act.\n\nPart 4—Other matters\n\n \n\n14  Eligible car parking expense payment benefit\n\n  For the purposes of subparagraph (c)(v) of the definition of eligible car parking expense payment benefit in subsection 136(1) of the Act, the provision of parking facilities for a car during a period referred to in that definition is taken to be excluded from that definition if:\n\n (a) the parking facilities are provided to an employee who:\n\n (i) is entitled under the law of a State or Territory to the use of a disabled persons’ car parking space; and\n\n (ii) is the driver of, or is a passenger in, the car; and\n\n (b) a valid disabled persons’ car parking permit is displayed on the car.\n\n15  Supplementary car rate\n\n  For the purposes of the definition of supplementary car rate in subsection 136(1) of the Act, the rate of 0.63 cents per kilometre travelled is prescribed.\n\nPart 5—Application and transitional matters\n\n \n\n16  Application of this instrument etc.\n\n (1) This instrument applies in relation to years of tax starting on or after 1 April 2018.\n\n (2) Despite the repeal of the Fringe Benefits Tax Regulations 1992 by this instrument, those regulations continue to apply in relation to years of tax starting before 1 April 2018.\n\nSchedule 1—Repeals\n\n \n\nFringe Benefits Tax Regulations 1992\n\n1  The whole of the instrument\n\nRepeal the instrument.\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument primarily re-enacts and updates the existing subordinate regulation framework for fringe benefits taxation rather than materially broadening or changing the statutory scope. It repeals the Fringe Benefits Tax Regulations 1992 (Schedule 1) and brings forward a consolidated set of prescribed exclusions and technical rules for years of tax starting on or after 1 April 2018 (reg 16). The substance preserves numerous established, narrowly targeted exclusions (health care overseas where Medicare is not payable (reg 6), Defence and police related housing, travel and removal assistance (regs 7–8), pooled cars and marked emergency/service vehicles (regs 9–10), and disabled parking exclusions (regs 12, 14)). The instrument also sets a technical supplementary car rate (reg 15) and a formula for varying a notional tax amount (reg 13) — these are technical updates rather than a substantial expansion of coverage. Overall, changes are procedural/technical and transitional rather than a significant change of policy scope."},"complexity_factors":["Short instrument (16 substantive regulations plus a Schedule) — limited length","Around a dozen defined terms in reg 5 relied on throughout the instrument","Multiple cross-references to the Fringe Benefits Tax Assessment Act 1986 (e.g. paragraph 5E(3)(i), subsection 7(1), section 39A, subsection 110(1), subsection 136(1))","Several multipart, nested conditions for exclusions (for example, reg 6(2)(a)–(e); reg 7(3)(a)–(g))","External cross-references to non‑regulatory instruments (Defence Determination 2016/19, State/Territory law for disabled parking permits) increase interpretive dependencies","A technical formula to vary an employer’s notional tax amount (reg 13) requiring historical/current year rate inputs","Transitional and repeal mechanics (Schedule 1 and reg 16) that preserve prior rules for earlier tax years"],"plain_english_summary":"**What this instrument does (mechanically)\n\n- Replaces the old Fringe Benefits Tax Regulations 1992 for tax years starting on or after 1 April 2018 and carries over the old regulations for earlier years (regs 1, 2, Schedule 1, reg 16).\n- Prescribes which kinds of employer-provided benefits are \"excluded\" from being treated as fringe benefits for the purposes of the Fringe Benefits Tax Assessment Act 1986 (the Act). That means those particular benefits do not attract fringe benefits tax (see regs 6–12, 14).\n- Sets a small technical rate used in car‑benefit calculations (a \"supplementary car rate\" of 0.63 cents per kilometre) (reg 15).\n- Provides a formula to vary an employer's notional tax amount used in a particular calculation under the Act (reg 13).\n- Defines a handful of terms used in the regulations and cross‑references other Commonwealth and State instruments where relevant (reg 5).\n\nWho is affected\n\n- Employers who provide benefits to employees (chiefly the party that pays fringe benefits tax) — they must apply the specified exclusions when working out FBT liability (see regs 6–12, 14).\n- Employees of the Defence Force, police forces, Commonwealth agencies, and other specified employees — some benefits they receive are carved out from FBT treatment (regs 7–8, 11).\n- Employers who provide cars, pooled cars, parking or living-away-from-home allowances — the rules set when those items are excluded from FBT (regs 9–10, 12, 14–15).\n- State and Territory authorities that issue disabled parking permits — those permits are used to trigger specific parking exclusions (regs 12, 14).\n\nWhy it matters (stated purpose and practical effects)\n\n- The regulation explicitly lists situations where particular employer‑provided benefits are not treated as fringe benefits for FBT purposes (for example: emergency health care provided overseas to Australian citizens or permanent residents when no Medicare benefit is payable (reg 6); certain Defence Force and police allowances and accommodation-related assistance (regs 7–8); pooled car arrangements (reg 10); eligible Commonwealth living‑away‑from‑home or accommodation benefits (reg 11)).\n- Mechanically, excluding a benefit reduces the employer's FBT liability: employers may pay less FBT where a benefit meets the prescribed conditions. That shifts the tax outcome relative to otherwise treating the same provision as an assessable fringe benefit (see regs 6–12, 14).\n\nTesting the instrument's stated purpose against costs, incentives and risks\n\n- Claimed purpose: to prescribe and clarify the particular benefits that are excluded from FBT (see Parts 2 and 4). The text accomplishes that by listing detailed conditions for exclusions (regs 6–12, 14).\n\n- Who pays and who decides: employers remain the parties that calculate and pay FBT, but employers must apply the exclusions and keep evidence that the conditions are met (for example, proof of a valid State/Territory disabled parking permit (regs 12, 14), Defence/Police directions or determinations (regs 7–8), proof that Medicare is not payable (reg 6)). The ATO will enforce and interpret these conditions when assessing FBT returns.\n\n- Behavioural effects and incentives: employers may structure benefits to fall within prescribed exclusions (e.g. using pooled cars, making payments structured as particular allowances, or providing housing on bases or adjacent to police stations) to reduce FBT costs (regs 8–11). Employees and employers will need to document eligibility (increasing record‑keeping).\n\n- Concentrated benefits, diffuse costs: many exclusions target narrow groups (Defence Force members, police, Commonwealth employees) — these are concentrated beneficiaries of the carve-outs (regs 7–8, 11). Any revenue reduction is dispersed across the Commonwealth taxing base rather than focused on a particular sector.\n\n- Implementation and compliance burden: the rules are technical and rely on external references (for example, Defence Determination 2016/19, State/Territory permitting regimes, and multiple sections of the Act). Employers will need to retain documentary evidence and may face disputes with the ATO about whether specific conditions were satisfied (reg 5 definitions; regs 6–12, 14).\n\n- Administrative discretion and complexity: the instrument depends on other legal instruments (the Act, Defence determinations, State/Territory laws) to determine eligibility. That creates implementation reliance on those instruments for the ATO, employers and affected employees (see reg 5 and cross‑references throughout).\n\nNet mechanical effect summarised\n\n- The regulations narrow the set of benefits that attract fringe benefits tax in specific, enumerated situations, mostly by prescribing exclusions for certain health, Defence, police, Commonwealth employee, car and parking related benefits (Parts 2 and 4).\n- Employers remain responsible for applying these rules, documenting eligibility, and bearing any compliance costs. The ATO enforces the Act and these regulations when assessing liability.\n\nKey sections to look at quickly: reg 5 (definitions), regs 6–12 and 14 (excluded benefits), reg 13 (variation formula for notional tax amount), reg 15 (supplementary car rate), reg 16 and Schedule 1 (transitional and repeal of the 1992 Regulations)."},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"This is a remake of the 1992 Regulations, consolidating and updating the rules without significantly expanding beyond the original purpose of specifying FBT exemptions and administrative details. The scope remains focused on prescribing excluded fringe benefits and procedural matters under the FBT Assessment Act."},"complexity_factors":["Multiple cross-references to the Fringe Benefits Tax Assessment Act 1986 (the parent Act), requiring readers to flip between instruments","Nested conditional logic in exemption provisions (e.g., section 7(3) has 6 sub-paragraphs with multiple cumulative conditions for Defence Force benefits)","Defined terms section with 9 specific definitions, some referencing external legislation (Defence Act 1903, Public Governance Performance and Accountability Act 2013, Australian Citizenship Act 2007, Health Insurance Act 1973)","Formula-based calculation in section 13 requiring understanding of 'base year' and 'current year' concepts from the parent Act","Specific numerical thresholds (100km from eligible urban area, 130,000 census population, 4-year time limit for housing purchases) that create boundary conditions","Overlap and interaction between sections (e.g., section 8 police car benefits vs section 9 general emergency services car benefits)","Transitional provisions applying different rules to different financial years (pre- and post-1 April 2018)"],"plain_english_summary":"This instrument clarifies and narrows how Fringe Benefits Tax (FBT) applies by exempting certain job-related non-cash benefits (notably for Defence, police, emergency and other public-service roles), setting a method to adjust employer tax when FBT rates change, and fixing a supplementary car rate. It affects employers (especially government, Defence and emergency services), employees receiving these benefits, and the ATO. The change reduces tax burdens on essential public-service benefits so compensation and operational support aren’t eroded by FBT."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/fringe-benefits-tax-assessment-regulations-2018","history":"/api/acts/fringe-benefits-tax-assessment-regulations-2018/history","analysis":"/api/acts/fringe-benefits-tax-assessment-regulations-2018/analysis","conflicts":"/api/acts/fringe-benefits-tax-assessment-regulations-2018/conflicts","importantCases":"/api/acts/fringe-benefits-tax-assessment-regulations-2018/important-cases","documents":"/api/acts/fringe-benefits-tax-assessment-regulations-2018/documents"}}