Make sure you’ve mapped out your FBT arrangements and you’re on track to get your obligations right

Beep if you’re providing perks or benefits

Get to know what benefits are fringe benefits. As an employer, you may be offering perks or extras on top of salary and wages to attract and keep workers. If you’re doing this, or even if you’re just thinking about it, you don’t want to lose sight of the possible FBT implications.

Some common benefits you might have to pay FBT on include:

• car parking
• gym memberships
• tickets to shows and concerts
• discounted loans

The 2025 FBT year started 1 April 2024 and ends on 31 March 2025.  Remember these four key steps to getting FBT reporting right:

1. Identify what qualifies as a fringe benefit.
2. Determine the taxable value. Use the approved valuation methods to calculate the taxable value of the fringe benefit to determine if you have an FBT liability.
3. Lodge an FBT return. If you have an FBT liability, you’ll need to lodge your FBT return and pay any FBT you owe by 21 May, unless your tax agent lodges electronically for you.
4. Keep records to demonstrate your calculations. Make sure you’re keeping relevant records for the required timeframe to support your FBT position.

Know the road rules for FBT vehicle exemptions

Do your staff use company-owned eligible vehicles for private use?  If they do, you should know that you can only claim an FBT exemption if that private use is limited.

Eligible vehicles include:

• a single cab ute, or
• a dual cab ute designed to carry either:
  • a load of 1t or more,
  • more than eight passengers (including the driver), or
  • a load of less than 1t but not designed for the principal purpose of carrying passengers.

Limited private use includes:

• travel between home and work,
• travel that’s incidental in the course of employment duties,
• non-work-related use that is minor, infrequent, and irregular (such as occasional use of the vehicle to remove domestic rubbish).

If your employees are using eligible company vehicles – even dual cab utes – to cruise up the coast, go four-wheel driving on the beach or head off camping with mates, this is not limited to private use. FBT applies as you’re providing a car fringe benefit or residual fringe benefit.

Charge up on these changes

Electric vehicles in your fleet? The ATO has introduced a new short-cut method for calculating electricity costs for home charging.

Here’s what you need to know:

• You can use the new rate of 4.20 cents per kilometre for FBT and income tax purposes
• This applies to zero-emissions cars, plug-in hybrid models are excluded
• Employees can choose to calculate by actual costs if they prefer
• This rate can be used for FBT reporting back to 1 April 2022.

Keep your governance in the right lane

As an employer, it’s important to have good governance processes in place like keeping track of key dates for lodging and paying FBT and checking that you’re paying the correct amount on time.

Make sure you also understand the extra documents and calculations you need to hang on to specifically for FBT (no, the back of your hand doesn’t count). If you have certain FBT exemptions and concessions, you’ll also need to obtain records from your employees.

If your governance and record keeping isn’t accurate, it may cost you more money in the long run.

You may experience bumps in the road, which can make it hard to meet your obligations. If something unexpected comes up, contact the ATO before the due date to discuss your options. Always ensure you’re providing the correct information and if you make a mistake, you can visit the ATO website for guidance on how to correct it.

For more information on FBT, visit ato.gov.au/fbt or talk to your trusted tax advisor.