Fringe Benefits Tax (FBT) is a tax that employers must pay when they provide certain non-cash benefits to their employees. The FBT year runs
Fringe Benefits Tax (FBT) applies to non-cash benefits employers provide to employees. The 2025 FBT year runs from April 1, 2024, to March 31, 2025, with key updates including the removal of the FBT exemption for plug-in hybrid vehicles from April 1, 2025, and the ATO’s increased scrutiny on car fringe benefits and entertainment expenses. Common mistakes include misclassifying benefits, poor record-keeping, and missing exemptions. To stay compliant, businesses should conduct an FBT review, maintain accurate financial records, and seek professional advice. Lodgment deadlines are May 21, 2025 (self-lodged), and June 25, 2025 (via a tax agent).