The Tax Office continues to see situations where tax planning decisions from many years ago are giving rise to significant consequences
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.
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-lodgement - 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 the threshold, 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 lodgement can result in a penalty of per 28-day period.