From www.pwc.com.au: Loan fringe benefits occur when an employer provides a loan to an employee at a reduced interest rate or no interest, which is assessed based on the difference between the statutory and actual interest rates.

Employers should be aware of various scenarios that can constitute loan fringe benefits, such as salary overpayments and loans for personal expenses, while also considering available exemptions.

Debt waiver fringe benefits arise when an employer releases an employee from repaying a debt, unless it is a genuine bad debt write-off, and both loan and debt waiver benefits may apply to the same situation.