Business taxation
Fringe benefits tax, calculated and documented before the ATO asks
A work car, a parking space, a staff Christmas party, a salary-packaged laptop or a loan to an employee. Benefits like these are part of how many businesses reward their people, and most of them carry fringe benefits tax.
FBT is paid by the employer, not the employee, at 47% of the grossed-up value of the benefit. It runs on its own year, from 1 April to 31 March, with its own return and its own records. It's also easy to get wrong: benefits go unrecognised, exemptions are claimed without evidence, and logbooks and declarations are missing when they're needed.
TaxProof identifies your fringe benefits, applies every exemption and concession you're entitled to, and builds the records that support each figure in your FBT return.
What we look after
FBT review
We go through your payroll, expenses and company assets to find benefits you may be providing without realising.
FBT return preparation and lodgment
We calculate your liability and lodge your annual return.
Instalments
If your FBT liability is large enough to require quarterly instalments through your activity statements, we make sure they're right.
Reportable fringe benefits
Where an employee's reportable benefits exceed $2,000 in taxable value, the grossed-up amount must appear on their income statement. We calculate and report it correctly.
Salary packaging and novated leases
We review arrangements so employer and employee both understand the FBT outcome.
Exemptions and concessions
We check what applies to you, and keep the evidence to support it.
Common fringe benefits
| Benefit | Examples |
|---|---|
| Cars and vehicles | Work cars available for private use, novated leases, parking, tolls |
| Entertainment | Staff functions, meals, events, related travel and accommodation |
| Expense payments | Paying or reimbursing an employee's private expenses, such as school fees or gym memberships |
| Loans | Low- or no-interest loans to employees, or forgiving an employee's debt |
| Housing and accommodation | Rent-free or subsidised housing, living-away-from-home allowances |
| Property and other benefits | Goods, shares or other benefits given to employees |
Exemptions worth knowing
Minor benefits
Benefits with a notional taxable value under $300 may be exempt, where it would be unreasonable to treat them as fringe benefits, considering how often they're given and their total value.
Work-related items
Portable electronic devices and tools of trade are generally exempt.
Electric cars
Eligible battery electric cars may be exempt, including under salary packaging, though the value may still need to be reported.
Employee contributions
Amounts employees pay towards a benefit can reduce its taxable value.
Each exemption has conditions. We check them against your circumstances before relying on them.
Proof behind every FBT number
FBT is a records tax. The right figure depends on the right evidence: vehicle logbooks and odometer readings, employee declarations, records of employee contributions, and invoices that support any GST-based gross-up. We build these as part of preparing your return, so your position is ready if the ATO reviews it.
Key dates
FBT year
1 April to 31 March.
Return due
21 May if you lodge yourself, or 25 June when lodged electronically through a tax agent (you must be on the agent's client list by 21 May).
Registered but nothing to pay?
You may need to lodge a notice of non-lodgment instead of a return.
Common questions
Do small businesses pay FBT?
Yes, if they provide fringe benefits to employees. Several exemptions and concessions can reduce or remove the liability, and we'll check which apply.
Is FBT paid by the employee?
No. FBT is paid by the employer. Employees with reportable fringe benefits will see the amount on their income statement. It isn't taxed as their income, but it counts in some income tests.
Thinking about a work vehicle or a novated lease?
The finance structure affects both your income tax and your FBT. See our Asset & Car Finance page.
Get your FBT right this year
Let us review your benefits before 31 March, so your return is accurate and your records are ready.