The otherwise deductible rule allows employers to pay tax-deductible expenses on behalf of employees without incurring a fringe benefits tax(FBT) liability. The simplest example is an employer that pays for a training session or a professional membership for a staff member, under the otherwise deductible rule the employer is able to claim a deduction
As directors of companies are also classified as employees the same rule applies to private companies paying expenses on behalf of the directors including items such as accounting fees, audit insurance, training etc.
Disclaimer: This information is general in nature, and you should examine your situation carefully as the legislation or further information becomes available. So, before acting on this or any other information, it is important to seek professional advice related directly to you and your circumstances. Should you require our assistance, contact your Primarius Team leader, or email us at firstname.lastname@example.org