As we approach 31 March 2026, now is the time for business owners and directors to review their Fringe Benefits Tax position. Once the FBT year closes, opportunities to reduce or manage your liability are extremely limited. A proactive review before year-end can prevent unexpected tax bills and penalties.

Fringe Benefits Tax applies when a business provides benefits to employees or directors outside of normal wages. Many businesses assume FBT only applies to company cars, but a range of common arrangements can trigger an FBT liability.

When Is FBT Due?

The FBT year runs from 1 April to 31 March each year.

For the FBT year ending 31 March 2026, FBT return and payment due date is 21 May 2026

Even if your business has lodged FBT before, your position should be reviewed annually as vehicle usage, entertainment spending and employee arrangements often change.

Common FBT Triggers

FBT applies when benefits are provided to employees or directors in respect of their employment. The most common triggers include:

• Company vehicles available for private use, including home-to-work travel

• Dual cab utes that may not meet exemption requirements

• Staff Christmas parties and entertainment

• Sporting or concert tickets

• Paying personal expenses through the business

• Interest-free or low-interest loans to employees or directors

• Novated lease arrangements

• Providing car parking in certain commercial areas

Even small or infrequent benefits can create an FBT liability.

If you have a dual cab ute, it is important not to assume it is automatically exempt. You can read more here:
Why Dual Cab Utes Aren’t Automatically FBT-Free

If you are unsure whether your vehicle arrangement triggers FBT, our article Getting Car Fringe Benefits Right: When FBT Applies and When It Doesn’t explains the key distinctions.

Logbooks and Calculation Methods

Motor vehicles remain the most common source of FBT exposure. Choosing the correct calculation method and maintaining proper records can significantly reduce your liability.

If you are using the operating cost method, make sure your logbooks are valid and up to date before 31 March.

For a practical breakdown, see:
Car Fringe Benefits Logbooks: How to Save on Tax and Stay Compliant

Entertainment and the Holiday Season

As we move toward the end of the FBT year, businesses should also review any entertainment provided, particularly Christmas parties, client functions and tickets.

Entertainment FBT can be complex depending on who attended, where the event was held and how it was paid for.

You can revisit our detailed guide:
Holiday FBT Guide 2025–26: What to Know Before You Celebrate

What Can Be Reviewed Before 31 March?

Once 31 March passes, your options are significantly reduced.

Before year-end, you may be able to:

• Review whether an exemption applies

• Apply or adjust employee contributions

• Ensure logbooks are valid

• Review director loan balances

• Choose the most tax-effective vehicle calculation method

Failing to review these items before 31 March can result in unexpected FBT liabilities.

What You Should Have Ready

To prepare for your 2026 FBT obligations, ensure you have:

• Odometer readings at 31 March 2026

• Details of all vehicles provided to employees or directors

• Logbooks, if using the operating cost method

• Records of employee contributions

• Details of staff events, entertainment or gifts provided

• Information about loans, novated leases or personal expenses paid by the business

If you are unsure whether FBT applies to your business, it is best to review your position before the FBT year ends. Early planning allows time to manage the exposure properly rather than dealing with surprises after 31 March.