ATO ID 2004/301: Exempt benefits: Influenza (Flu) vaccinations & work-related preventative health care
Date of decision: 23 March 2004
Year of income: 31 March 2005
Business line: Superannuation and Employer Obligations

Issue
If an employer provides an employee with a free flu vaccination, is this an exempt benefit under section 58M of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Decision
Yes. The provision of a free flu vaccination to an employee will be an exempt benefit under section 58M of the FBTAA.

Facts
Flu is a serious respiratory infection that can be spread easily from one person to another. The employer has made free flu vaccinations available to all its employees although not all of the employees take up this offer. The vaccinations have been administered by a nurse or doctor.

Reasons for decision
Summary: Section 58M of the FBTAA exempts from FBT any 'work-related preventative health care' (WRPHC) of the employee. This term is defined in subsection 136(1) of the FBTAA to basically mean any form of care provided by, or on behalf of a medical professional to prevent work-related trauma provided it is not excluded from those employees: 'Work-related trauma' is defined in subsection 136(1) of the FBTAA to include the contraction of a disease that is related to the employment of the employee. Because of the nature of flu, any member of the workforce is equally susceptible to contracting this disease and therefore it would qualify as 'work-related trauma'. Although the employer's offer of free flu vaccinations was only taken up by some employees, as it was offered to all employees the requirements of the definition of WRPHC have been satisfied. On that basis, the benefit would be an exempt benefit under section 58M of the FBTAA.

Legislative references: Fringe Benefits Tax Assessment Act 1986 section 58M section 136 subsection 136(1)
Related ATO interpretative decisions: ATO ID 2002/963
Subject references: Exempt benefits FBT work-related preventative health care FBT work-related trauma Fringe benefits tax