FBT Year Ends 31 March: Time to Get Your Records Ready

The Fringe Benefits Tax year runs from 1 April to 31 March, which means the current FBT year ends in less than eight weeks. If your business provides any benefits to employees (including yourself as a director), now is the time to gather your records.

What to check now

Vehicle logbooks:

If you started a logbook in January (as we suggested in last month’s newsletter), keep it running until you’ve completed 12 consecutive weeks. If your existing logbook is more than five years old or your travel patterns have changed significantly, you’ll need a new one.

Employee declarations:

For certain benefits, you’ll need signed declarations from employees. This includes “otherwise deductible” declarations for work-related items and living-away-from- home declarations.

Entertainment records:

If you’ve provided meals, events, or entertainment to staff, make sure you have records of who attended, the business purpose, and the costs. The distinction between “entertainment” and “non-entertainment” food affects how it’s treated for FBT.

Expense reimbursements:

Review any reimbursements you’ve made to employees for items that have a private use element. This can include phones, laptops, and home office equipment.

Common FBT-exempt benefits to remember

Not everything triggers FBT. Items that are primarily for work (laptops, phones, tools of trade) are generally exempt. Minor benefits under $300 that are infrequent may also be exempt. Electric vehicles under the luxury car limit remain FBT-exempt, though plug-in hybrids lose this exemption from 1 April 2025.

Key FBT dates coming up

• 31 March 2026: FBT year ends
• 21 May 2026: FBT return and payment due (if self-lodging)
• 25 June 2026: FBT return and payment due (if lodging through an agent)

If you’re unsure whether your business has FBT obligations or need help pulling together your records, get in touch. It’s much easier to sort this out now than in the weeks leading up to lodgement.