The end of the 2026 Fringe Benefits Tax (FBT) year is just around the corner (1 April 2025 to 31 March 2026).
If you are getting assistance from a tax agent with your 2026 FBT return, the due date for lodgement and payment is 25 June 2026.
What is Fringe Benefits Tax?
Fringe Benefits Tax (FBT) is a tax payable by employers on certain non-cash benefits provided to employees or their associates. This also includes non-salary directors/trustees. The tax is paid by the employer and is separate from income tax.
Common examples of benefits that may give rise to FBT include:
- Allowing an employee to use a company-owned or leased vehicle for private purposes
- Paying or reimbursing expenses incurred by an employee
- Providing entertainment, such as Christmas parties, meals, drinks, or recreational activities
- Providing loans to employees or forgiving employee debts
- Payments or benefits provided to compensate employees for living-away-from-home expenses
What To Do Next
To assist with preparation for the FBT year ending 31 March 2026, we recommend that you:
- Review whether you have provided any non-cash benefits to employees that may be subject to FBT
- Consider maintaining a 12-week vehicle logbook to substantiate business versus private use. This enables the use of the operating cost method, which can often result in a more favourable FBT outcome
- Record the closing odometer reading as at 31 March 2026 for any vehicles used by employees
- Ensure clear descriptions are entered in your online accounting software for transactions coded to ‘Entertainment expenses’ or ‘Staff amenities’. This allows your Harris Black team member to correctly distinguish between FBT-applicable and FBT-exempt expenses
For Harris Black clients, if FBT is relevant to your circumstances, you will receive an FBT checklist to help identify any benefits you may have provided that are subject to FBT.
If you do not receive a checklist but believe you may have provided applicable non-cash benefits, please contact your Harris Black team member so we can assist.
Should you have any questions or wish to discuss your specific situation, please do not hesitate to get in touch.