Fringe benefits tax – what to check before FBT lodgement

FBT (Fringe Benefits Tax) applies when you provide benefits to employees outside of salary.

Before lodging, the key step is to identify whether any employee-related expenses create an FBT obligation.

FBT lodgement deadlines

• 21 May 2026 — paper lodgement
• 25 June 2026 — electronic lodgement

Step 1 — start with your expenses

Review expenses that may relate to employees. Focus on areas where FBT most commonly applies:

• vehicles available for private use
• reimbursements of personal expenses
• benefits provided outside payroll
• travel and entertainment

For each item, confirm:

• what the expense is
• whether it relates to an employee
• whether there is a private benefit

This is where FBT exposure is identified.

Step 2 — confirm your position

After reviewing your expenses, make a clear decision:

• An FBT liability applies → you must register and lodge
• No liability applies → lodge a nil return (if already registered)

Even if nothing stands out, this step should still be completed each year.

Where businesses get it wrong

Most issues come from not reviewing FBT at all. Common situations include:

• assuming expenses are “business only” when they include private use
• missing vehicle-related FBT
• not linking expenses to specific employees
• skipping the review entirely if no FBT was identified in previous years

Final note

FBT is not about the volume of transactions. It’s about identifying the right ones.

A simple review before lodgement is usually enough to confirm your position and avoid issues later.