When fringe benefits tax in imposed on an allowance, the amount is effectively made exempt from income tax in the hands of the employee. To ensure that fringe benefits tax does not distort the tax system, taxpayers are required to enter the amount of the individual fringe benefits amount in the income tax returns  

Employers are required to provide payment summaries of fringe benefits paid to their employees. (CCH Master Tax Guide para 35-055) These summaries include the 'grossed up taxable value' of fringe benefits where the value exceeds $1,000.

Fringe Benefits that are excluded include