How FBT return help usually works
We begin with a focused review of your position for the FBT year (1 April–31 March): business structure, payroll and STP setup, salary packaging, vehicles in use, entertainment spend, and any existing FBT registrations or prior returns.
Work then moves through three stages:
- Immediate triage: identify any lodgment/payment deadlines and address urgent record gaps (car logbooks, employee declarations, substantiation of entertainment).
- Preparation and calculation: classify benefits, apply concessions (minor benefits, otherwise deductible rule, eligible work vehicles), choose valuation methods (for cars: statutory formula vs operating cost), apply Type 1/Type 2 gross-ups and calculate FBT at the current rate (47%).
- Lodgment and year-end wrap: prepare the return, arrange payment, and complete reportable fringe benefits amounts (RFBAs) for STP finalisation where an employee exceeds the threshold.
Australian FBT rules at a glance
- FBT year: 1 April–31 March. Lodgment is generally in May if self-lodging and commonly extended into June via a registered tax agent (confirm the ATO’s current-year dates).
- Rate and gross-up: FBT is currently 47% applied to grossed-up taxable values (Type 1 where GST credits are claimable; Type 2 where they are not).
- Cars and utes: value via statutory formula or operating cost (logbook). Limited private use rules may apply to eligible work vehicles.
- Entertainment: choose a valuation method (actual, 50/50 split, or 12-week register) and be consistent. Keep invoices and attendee details.
- Concessions: minor benefits (generally less than $300 and infrequent), otherwise deductible rule, certain work-related items and specific not‑for‑profit concessions/caps.
- RFBAs: if an employee’s reportable benefits exceed the threshold, include on their income statement via STP finalisation (not taxed in their hands but may affect means-tested items).
Common FBT scenarios we handle
Company cars and utes
Selecting valuation methods, validating logbooks/odometer readings, assessing eligible limited private use, and reconciling fuel, servicing and employee contributions.
Salary packaging/novated leases
Ensuring correct setup and reporting, applying concessions where eligible, and calculating grossed-up amounts for the return and RFBAs.
Meal entertainment
Choosing between actual, 50/50 split or 12-week register methods, tracking attendees and GST, and applying consistent treatment.
Expense payment benefits
Reviewing reimbursements, applying the otherwise deductible rule, and substantiating work-related claims to reduce taxable value.
What to compare before choosing FBT help
Scope
Confirm inclusion of data review, benefit classification, valuation choices, return lodgment, payment planning and RFBA support for STP finalisation.
Software fit
Check capability with your accounting/payroll systems (e.g. Xero, MYOB, QuickBooks) and how FBT data will flow into your reports.
Turnaround and communication
Ask about deadlines, how record gaps are escalated, and who you contact during the peak FBT window.
Commercial fit
Compare fee structure, inclusions, and whether you want compliance-only or ongoing advisory (e.g. packaging design, policy updates, logbook reviews).
What we need to prepare your FBT return
- Vehicles: make/model, dates available, opening/closing odometer readings, logbooks, finance/leasing details, operating costs and any employee contributions.
- Entertainment: invoices, attendee lists (staff/associates/clients), method used (actual vs 50/50 vs 12‑week register), and GST treatment.
- Expense payments: reimbursement details, invoices/receipts, and any evidence for the otherwise deductible rule.
- Salary packaging: agreements, novated lease schedules, and payroll/STP configuration.
- General: prior FBT returns (if any), ATO correspondence, and your preferred lodgment/payment approach.
Best next steps
Write down the outcome you need: accurate FBT classification, on‑time lodgment, lower risk via better records, and clarity on RFBAs. Gather the key documents listed above so we can confirm scope and timeline quickly.
If your needs are broader than FBT, explore related services below and narrow the brief. Then request help so we can match you with the right support.
Frequently asked questions
Do I need to lodge an FBT return?
You generally must lodge if you provided fringe benefits during 1 April–31 March and FBT is payable. If you are registered for FBT but no FBT is payable, you would usually lodge a nil return or update your registration. If you provided no fringe benefits, you typically do not need to lodge.
When is the FBT return due?
The FBT year is 1 April–31 March. Self‑lodgers are generally due in May, while registered tax agents often have an extended date into June for electronic lodgment. Always confirm the ATO’s current-year dates.
What records are required for cars and entertainment?
For cars, keep a valid logbook (if using the operating cost method), opening/closing odometer readings, and details of any employee contributions. For entertainment, keep invoices and attendee details, choose a valuation method (actual, 50/50 split or 12‑week register) and apply it consistently.
Can I reduce FBT legally?
Yes. Common approaches include the minor benefits exemption (generally less than $300 and infrequent), the otherwise deductible rule (where an employee would have been entitled to a deduction), correct classification of eligible work-related items, and ensuring employee contributions are received before 31 March. Some not‑for‑profits have specific caps or concessions. Seek advice for your situation.