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.