Fringe Benefits Tax (FBT) isn’t as complicated as it sounds—once you know what to look for.
If you’ve offered your employees anything outside of their usual paycheck, from a company car to entertainment perks, you might have some FBT obligations to deal with. But don’t worry.
In this blog, we’ll break it all down: what counts, what doesn’t, and what you need to do to stay compliant (and stress-free) this FBT season.
Are You Accidentally Overlooking FBT?
Have you given your employees anything outside of their usual pay? Not just bonuses—things like:
- Use of a company car for personal errands
- Paying for their gym memberships
- Free tickets to a concert or sports event
- Meal entertainment or accommodation perks
If that’s a yes (even just one of them), then you’re likely dealing with fringe benefits. And that means one thing: the Australian Tax Office (ATO) wants a word.
But don’t stress just yet. Knowing your FBT obligations and taking action now could save you from a world of paperwork and penalties later.
“It’s Just a Gym Membership, What’s the Big Deal?”
This is where many businesses slip up. It’s easy to overlook small perks or think they won’t amount to much. But the ATO doesn’t see it that way. Even if you’ve only provided a few fringe benefits, you could still have a tax liability.
Let’s say you gave your employee access to a company car for weekends—sounds innocent enough, right? But even occasional private use can make it a reportable benefit. And that’s where FBT kicks in.
Failing to report it correctly could lead to fines, back-payments, and a whole lot of headaches you don’t need.
Key Dates You Can’t Afford to Miss
Let’s break this down nice and simple:
- Lodging it yourself or using a tax agent who lodges by paper? You must lodge and pay by 21 May 2025.
- Using a tax agent who lodges electronically? You might have until 25 June 2025.
- New to using a tax agent for FBT? Make sure they add you to their FBT client list by 21 May or you miss out on that extended due date.
Sounds straightforward, right? But miss those dates, and it’s not just a slap on the wrist. You could be facing serious financial consequences.
Okay, So What Do You Actually Need to Do?
Here’s the step-by-step so you can get it done and dusted:
- Identify the benefits you’ve provided. Car use? Tickets? Meals? Anything non-cash that feels like a bonus? That counts.
- Figure out the taxable value. This part gets tricky, but it’s essential. If you’re not sure how to do this, your tax agent can help.
- Lodge the FBT return and pay up. By the correct deadline—and no, that doesn’t mean “whenever you get around to it.”
- Keep proper records. You’ll need them to back up your calculations if the ATO ever comes knocking.
- Include your current financial institution details. That’s your bank info. No details = no refund. Simple.
Lodging a Nil FBT Return? That’s Still a Thing
Here’s another trap people fall into—thinking, “Well, I didn’t really give anything major, so I’ll just skip it this year.”
Wrong move.
If you’re registered for FBT and you don’t owe anything, you still need to lodge a notice of non-lodgment. Otherwise, the ATO might think you just forgot. And they don’t love surprises.
Why Does This Matter?
Because getting it wrong costs you. And not just in fines or interest. It could affect your business reputation, your relationship with your accountant, and your stress levels.
You didn’t work hard all year just to let a missed form or late payment undo your efforts.
Bottom Line
It’s easy to put this off, FBT sounds like just another one of those acronyms that can wait. But it’s one of those “little” things that can cause big problems when ignored.
So, here’s your move:
- Check if you provided any benefits
- Work out their taxable value
- Talk to your tax professional
- Lodge on time
- Keep your records tight
That’s it. No stress, no mess—just sorted.
And if you’re ever unsure? Don’t guess. Ask.
The right advice now is worth a whole lot more than an apology letter to the ATO later.
Don’t Leave It Too Late
Fringe Benefits Tax isn’t about punishing generosity; it’s about accountability. Are you rewarding your staff? That’s awesome. But you have to play by the rules, too.
So, take a minute. Think about the perks you’ve given this year. Then get cracking before those deadlines creep up.
Because when it comes to tax time, there are two types of business owners: the ones who panic… and the ones who are prepared.
Which one are you going to be?
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