FBT stands for Fringe Benefits Tax. When an employer provides benefits that aren't captured by income tax, this tax is applied to calculate the taxable value of the benefits received.
The taxable value is generally what the cost to the employer of providing the benefit was. However, for some benefits like novated cars, the taxable value is calculated using the statutory formula or the operating cost method, or in the case of certain electric vehicles waived altogether.
FBT calculations and implications are complicated and can be significant. For example, the value of the subscription will still be a "reportable fringe benefit" for FBT purposes and may effect your eligibility for various governments benefits, including the Child Care Subsidy (amongst other things), as well as your liability to the Medicare Levy Surcharge or HECS (amongst other things). The salary packaging calculator on our website do not take into account all relevant details about the individual’s tax or financial circumstances. The actual tax payable by you or or overall benefit to you will depend on your personal circumstances.
You should seek advice from a financial/tax adviser before making any decision.