It’s FBT Time – What You Need to Know for 2025!
The Fringe Benefits Tax (FBT) year ended on 31 March 2025, and it’s now time to assess your FBT obligations.
The Australian Taxation Office (ATO) has announced that FBT compliance is a key focus for 2024–25, especially for privately owned and wealthy groups. In particular, they are monitoring whether employers are correctly identifying and reporting fringe benefits provided to employees, directors, and associates.
What Happens Next?
Over the coming days, we will be issuing FBT engagement letters via Ignition.
These letters will give you the opportunity to:
- Confirm whether fringe benefits were provided during the 2024 FBT year (e.g. cars, entertainment, loans, parking, or other non-cash benefits); and
- Advise whether an FBT return is required based on your business’s circumstances.
Once we receive your confirmation, we’ll proceed with the appropriate action—either preparing and lodging an FBT Return or preparing a Nil FBT Return where no benefits have been provided.
Why Lodge a Nil FBT Return?
Even if your business has not provided fringe benefits this year, we recommend lodging a Nil FBT Return.
Here’s why:
- Limits the ATO review period: Lodging a return limits the ATO’s ability to review your FBT position to just two years. If no return is lodged, they can review your business at any time into the future.
- Demonstrates compliance: Lodging a Nil Return confirms that you have actively reviewed your FBT position in good faith.
- Peace of mind: It protects your business from unexpected compliance issues down the track.
We’re Here to Help
FBT can be complex, and we’re here to make it simple. If you’re unsure whether certain benefits fall under the FBT rules, or you need guidance in reviewing your position, don’t hesitate to contact us.
Keep an eye out for your FBT engagement letter via Ignition in the coming days.
If you have any immediate questions or concerns, please contact your MGI Adelaide adviser.
