FBT retraining and reskilling exemption now law

The law has now changed to exempt fringe benefits tax (FBT) from 2 October 2020, for employers who provide training or education to assist their redundant, or soon to be redundant, employees into new employment.

To claim, retraining and reskilling benefits that are exempt from FBT:

• are not included in an employer’s FBT return or their employee’s reportable fringe benefits amount
• for employers who have already lodged their 2021 FBT return and paid, they can amend their return to reduce the FBT paid for retraining and reskilling that is exempt.

Employers must keep a record of all training and education provided.