If BZ Engineers provides its two employees with $460 worth of protective clothing (each), for no cost to each employee, for use only at work, during the FBT year ended 31 March 2020, what would the taxable value of this external property fringe benefit be?

Question

Quizplus · Accepted Answer

Protective clothing provided to employees for use at work is generally exempt from Fringe Benefits Tax (FBT) if it is primarily for the employees' safety. Since the protective clothing is for use only at work and assuming it is necessary for the employees' safety, the taxable value would be nil.

If BZ Engineers Provides Its Two Employees with $460 Worth