Fringe Benefits Tax (FBT) Guide – Key Checklist & Rates

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Key Actions to Meet the FBT Deadline

• Identify Benefits Provided (1 April – 31 March): Review all non-salary benefits given to employees or their associates, such as company cars, fuel, private expense reimbursements, gym memberships, or entertainment.
   
• Calculate Taxable Value: Determine the taxable value of benefits, particularly for company vehicles using either the statutory formula or operating cost method.
   
• Obtain Employee Declarations: Collect all necessary employee declarations (e.g., for car usage, "otherwise deductible" benefits, or living away from home) by the return due date.
   
• Obtain Logbooks/Odometer Records: Ensure 12-week logbooks are complete and capture opening and closing odometer readings for vehicles on 1 April and 31 March.
   
• Lodge and Pay (21 May): For self-preparers, lodge the FBT return and pay the total FBT amount by 21 May.
   
• Use a Tax Professional: If using a registered tax agent who lodges electronically, the deadline is extended to 25 June (agent must add you to their client list by 21 May).
   
• Lodge a Nil Return: If you are registered for FBT but have no liability, file a "Notice of non-lodgment - Fringe benefits tax" (NAT 3094) to avoid unnecessary compliance inquiries. 

Crucial Reminders for 2025/2026

• EV Exemption Changes: From 1 April 2025, plug-in hybrid electric vehicles (PHEVs) generally lose their FBT exemption. Check if a limited transitional rule applies to your vehicle.
   
• Record Keeping Update: From 1 April 2024, alternative record-keeping allows using existing company records instead of employee declarations for some benefits.
   
• Record Retention: Keep all records relating to FBT for five years.
   
• Reporting: If the total taxable value of benefits for an employee exceeds, report the grossed-up value in their Single Touch Payroll (STP) report. 

If you cannot pay on time, contact the ATO before the deadline to discuss options, as late lodgment can result in a penalty of per 28-day period.