Fringe Benefits Tax (FBT) Guide – Key Checklist & Rates
To meet the Fringe Benefits Tax (FBT) deadline for the year ending 31 March (with a standard due date of 21 May), employers must identify benefits provided, calculate the taxable value, maintain records, and lodge a return.
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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.
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