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Fringe Benefits Tax (FBT) can be a complex area for employers, particularly when it comes to health and wellbeing programs. The good news is that health assessments provided by Executive Health Solutions (EHS) are exempt from FBT. Our services fall under the ATO’s categories of work-related medical screening and preventative health care, meaning organisations can support their executives’ health without additional tax burdens.
Why the exemption applies
Under ATO guidelines, employer-provided health services are exempt from FBT when they involve:
- Work-related medical screening – examinations or tests by qualified practitioners to determine whether employees are suffering from, or at risk of, an illness or injury related to their work.
- Work-related preventative health care – medical or allied health services aimed at preventing employees from developing an illness or injury connected to their employment.
EHS assessments align directly with these categories. Our programs combine advanced medical screening with preventative care, helping executives identify health risks early and act before they affect performance.
The Executive Health Index™ 2024, developed from more than 31,000 executive health assessments, highlights the scale of the challenge:
- 1 in 2.5 executives have suboptimal coronary health, with 1 in 10 in a high-risk category.
- 62% of executives are overweight or obese, significantly increasing the risk of heart disease, diabetes, and some cancers.
- 1 in 3 executives present with elevated cholesterol, and 1 in 5 with elevated blood glucose.
- 43% report average to poor sleep quality, which impairs work performance by up to 30%.
- Most executives have three to four measurable health risk factors, underscoring the need for regular, structured screening.
What this means for employers
For organisations, the exemption removes uncertainty around tax treatment. Investing in executive health through EHS is not only cost-effective but also a strategic decision that strengthens leadership capability and organisational resilience. Left undetected, these risk factors can contribute to absenteeism, burnout, and reduced productivity. With FBT exemption confirmed, companies can invest in executive health programs knowing they deliver both commercial and wellbeing benefits..The benefit for executives
For executives, these assessments provide access to comprehensive, medically led care designed to detect health risks early and optimise long-term wellbeing. By addressing issues that often go unnoticed in standard check-ups, leaders can maintain the energy, resilience, and focus needed to perform at their best. In turn, this supports both individual career success and the organisation’s ability to rely on its leadership team to drive performance and deliver results.
Learn more
Further detail on these exemptions can be found in FBT section of the Australian Taxation Office website. If you would like tailored advice on how this applies within your organisation, our team at EHS is here to assist.
