Fringe Benefits Tax 2026

Fringe Benefits Tax (FBT) is one of those ATO obligations that businesses can’t ignore. If you provide non-cash benefits to employees (including working owners/directors) during the year, you need to assess your FBT position and, in most cases, lodge an FBT return.

What is a fringe benefit?

A fringe benefit is a non-cash benefit provided to an employee (or their associate) in respect of their employment. Examples include:

• Allowing an employee to use a company vehicle for private purposes

• Paying or reimbursing personal expenses such as a gym membership or school fees

When does the FBT year end?

The 2026 FBT year ends on 31 March 2026.

Who needs to take action

If your business provides any fringe benefits to employees (including working owners/directors), we’ll need to identify and account for those benefits for the 2026 FBT year.

Common fringe benefits we see

• Motor vehicles available for the private use of an employee or their associates

• Entertainment (e.g. client or staff meals, events, functions)

  
  

Action required now: Vehicle odometer reading

If your business owns or leases a motor vehicle, please check and record the odometer reading as at 31 March 2026. You can record this directly in the FBT checklist we’ll provide.

FBT return preparation and lodgement

Many employer clients, especially where benefits are only provided to owner/directors, ultimately pay no FBT because employee contributions reduce the taxable value to nil.

However, the ATO expects all employers who provide fringe benefits to prepare and lodge an FBT return, even where the taxable amount is reduced to nil.

Why lodging still helps you

• Lowers audit risk through proactive FBT management

• Starts the ATO’s 3-year amendment period for your FBT position

Key dates for the 2026 FBT year

• 31 March 2026: FBT year ends; record vehicle odometer readings

• Monday, 27 April 2026: Return your completed FBT checklist to us

• 25 June 2026: 2026 FBT return due for lodgement

Engagement letter

We’ll issue a separate FBT engagement letter before we commence work on your return.

Completing the FBT checklist

If we worked with you on FBT last year: we’ll shortly send a customised checklist for this year.

New to our FBT process or want a head start: contact us for an FBT checklist.

What we need from you by Monday, 27 April 2026

• Completed FBT checklist

• Any supporting documents requested (e.g. vehicle details, entertainment records)

• Odometer readings as at 31 March 2026

  
  

Not sure if something is a fringe benefit?

Some items may be exempt or subject to special rules. If you’re unsure whether a benefit is captured (or how it should be valued), please reach out, early clarification saves time later.

Need help?

If we can assist with any questions about your FBT obligations, call 08 9466 8478 or email admin@affluenceca.com.au.