FBT 2026: A Quick Guide for Employers
As the FBT year ends on 31 March 2026, now is the time for businesses to review their Fringe Benefits Tax position and avoid unexpected tax bills.
FBT applies when employers provide non‑cash benefits to employees, directors or their associates. Common examples include company vehicles, entertainment, reimbursed private expenses, loans, and certain salary packaging arrangements.
Key FBT 2026 Facts
FBT rate: 47%
FBT year: 1 April 2025 – 31 March 2026
Return due: 21 May 2026 (or 25 June via a registered tax agent)
Common Risk Areas
Motor vehicles – If a vehicle is available for private use (including commuting), FBT may apply. Logbooks must be valid and up to date before 31 March.
Entertainment – Staff functions, meals and events often trigger FBT depending on cost, location and attendees.
Minor benefits – Benefits under $300 are not automatically exempt; frequency and circumstances matter.
Electric vehicles – The FBT exemption continues for eligible EVs, but plug‑in hybrids generally stopped qualifying from 1 April 2025, unless transitional rules apply.
Why Act Before 31 March?
Once the FBT year closes, it’s usually too late to fix records or reduce liability. A short review now can help identify exemptions, confirm calculations and reduce compliance risk.
If your business provides vehicles, entertainment, or employee benefits, an FBT check before 31 March 2026 is strongly recommended.