Fringe Benefits Tax Time: What to check after 31 March
By Tina Zawila
The fringe benefits tax (FBT) year ended on 31 March. If you run a small business (or act as a director), now is a good time to check whether any benefits you provided could trigger an FBT obligation.
FBT commonly applies where a business provides non-cash benefits to employees or directors, such as motor vehicles, entertainment, reimbursed expenses, or the private use of business assets. Even where benefits are provided infrequently, or to associates (including family members), FBT can still apply.
Accurate records are critical—particularly for vehicle logbooks, fuel and odometer readings, kilometres travelled, and any employee contributions made by 31 March. The FBT return (and any payment) is generally due in May, so it’s worth reviewing benefits provided during the year now and gathering the information needed to prepare the return.
Even if FBT hasn’t applied to you in the past, it’s wise to review your position each year and keep evidence of what you checked (for example, an internal checklist and supporting documents).
April also brings changes to fuel tax credit (FTC) rates following the temporary fuel excise reduction. Businesses that claim fuel tax credits—particularly in transport, agriculture, construction and mining—should ensure they are applying the correct rate from 1 April 2026. Using an outdated rate can lead to over- or under-claims.
The home charging rate for electric vehicles has recently been updated from 4.2cents per kilometre (up to 31st March 2026) to 5.47 from 1 April 2026 for fringe benefits tax purposes and from 1 July 2026 for income tax purposes.
Because it can be difficult to determine whether a fringe benefit has been provided—and because taxable value calculations are often complex—small business owners should consider seeking advice from a registered tax agent.
If you would like assistance with your taxation obligations, please contact the team at UHY Haines Norton CQ on 4972 1300.
