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Service update Some of our key services are currently unavailable while we make some improvements to our system. These will be back on 8am, 16 April. Find out more

Service update Some of our key services will be unavailable from 3pm, 9 April until 16 April for a system upgrade. Find out more

You must pay fringe benefit tax (FBT) on contributions you make to any employees:

  • sickness, accident or death benefit fund
  • life, pension, personal accident or sickness insurance policy
  • friendly society insurance fund superannuation scheme where employer
  • superannuation contribution tax (ESCT) does not apply
  • funeral trust.

You pay FBT on contributions you make to an insurance policy when you:

  • take out the policy for an employee and pay their premiums
  • are a life insurer and offer discounted premiums for your life insurance agents and their families.

You do not pay FBT on contributions you make to an insurance policy when you:

  • pay the premiums on a policy which an employee took out. This is included in their gross salary or wages and subject to PAYE. 
  • take out a policy for an employee, pay the premiums and gain all the benefit from the policy. Your contributions are not included with their gross salary or wage.