Fringe Benefits Tax (FBT): What to Do Now

With the Fringe Benefits Tax (FBT) year ending on 31 March, the focus now shifts from planning to reviewing, finalising, and meeting your compliance obligations.

If your business has provided any non-cash benefits to employees over the past year, now is the time to ensure everything is accurately recorded and reported.

What is FBT?

FBT is paid by employers on certain benefits provided to employees (or their associates) instead of salary or wages. Common examples include:

  • Company cars available for private use
  • Entertainment expenses (meals, events, etc)
  • Payment of personal expenses
  • Employee discounts
  • Low or interest-free loans

What Happens Now?

Now that the FBT year has closed, there are a few key steps businesses should be focusing on.

1. Finalise Your Records

Ensure all fringe benefits provided between 1 April 2025 and 31 March 2026 have been identified and properly documented. This includes logbooks, receipts, and employee declarations.

2. Review Motor Vehicle Usage

Vehicle benefits remain one of the most common FBT triggers. Make sure logbooks are up to date and that business versus private use has been correctly calculated.

3. Assess Entertainment Expenses

Review any client or staff entertainment and confirm the correct FBT treatment and valuation method has been applied.

4. Capture Employee Contributions

If employees have made contributions towards benefits, these must be recorded correctly to reduce your FBT liability.

5. Check Exemptions and Concessions

Now is the time to ensure you’ve correctly applied any available exemptions – such as minor benefits or work-related devices.

6. Prepare for Lodgement

Your FBT return (if required) is due 21 May 2026, so getting everything in order early can help avoid unnecessary stress or errors.

Why This Matters

Missing or incorrectly reporting fringe benefits can lead to unexpected tax liabilities, penalties, and ATO scrutiny. A thorough post-year-end review helps ensure compliance and can also highlight opportunities to better manage FBT in the year ahead.

Now is a great time to reflect on your current arrangements. Small changes – such as adjusting how benefits are provided or improving record-keeping – can make a meaningful difference for your future FBT position.

If you haven’t yet reviewed your FBT obligations, now is the time. Get in touch with our team to ensure everything is in order.