Fringe Benefits Tax: Are Your Obligations Covered?
Have you provided employees with benefits beyond their salary—such as a company vehicle, staff social events, or payments for personal expenses? If so, your business may be required to lodge a Fringe Benefits Tax (FBT) return and pay any FBT owing.
The current FBT year runs from 1 April 2025 to 31 March 2026. If your business provided any employee benefits during this period—or you’re unsure whether you did—now is the time to review your position and ensure everything is in order.
Following these steps can help you meet your FBT obligations with confidence and stay compliant.
- Identify the fringe benefits provided
Start by identifying the benefits or perks you’ve provided to employees and determine the type of fringe benefit involved. This step is crucial, as it affects both the records you need to keep and how your FBT liability is calculated.
For example, if an employee has used a work vehicle for a weekend trip or personal travel, FBT may apply. Speaking with employees and reviewing usage can help ensure nothing is overlooked.
- Calculate the taxable value
Each type of fringe benefit has specific calculation methods. Applying the correct method allows you to determine the taxable value of each benefit and, ultimately, calculate your total FBT liability accurately.
- Keep accurate and complete records
Maintaining the right records is essential to support your FBT position. The records required will vary depending on the type of Fringe benefit provided but should clearly show:
- How the benefit was calculated
- Evidence supporting the taxable value
- Any exemptions or concessions claimed
Good record‑keeping not only ensures compliance but also makes the FBT process smoother and less time‑consuming.
- Lodge, pay and report on time
Your FBT return must be lodged and any tax paid by 21 May 2026.
If you use a registered tax agent, such as Omnis, you may be eligible for the extended due date of 25 June 2026.
You may also need to report any reportable fringe benefits amounts (RFBAs) for employees in their income statements by 14 July 2026.
Registered but no FBT payable?
If your business is registered for FBT but has a nil liability, you still need to notify the ATO by lodging a Fringe Benefits Tax – Notice of Non‑Lodgment.
Need help with FBT?
Understanding and managing FBT can be complex, particularly when multiple benefits or exemptions apply. To learn more about how fringe benefits tax works or to get assistance with your FBT obligations, speak with the registered tax agents at Supervision Group today—we’re here to help.
