FBT After Year‑End; What Employers Should Be Focusing On Now

With the Fringe Benefits Tax (FBT) year ending on 31 March, employers have now moved into the next phase of the FBT cycle — reviewing, finalising, and preparing to lodge.

While the deadline has passed, the work hasn’t stopped. Taking the time now to confirm how non‑cash benefits were treated during the year helps reduce compliance risk, avoids errors at lodgement, and ensures you’re prepared if the ATO reviews your position.

This year, the ATO’s expectations are particularly clear. The recent release of draft Practical Compliance Guideline PCG 2026/D2 reinforces the ATO’s broader focus on transparency, evidence, and economic substance when reviewing taxpayer behaviour — including employer obligations such as FBT.

What Is FBT?

FBT is a tax paid by employers on certain non‑cash benefits provided to employees, their associates, or contractors.

Even benefits that seem minor, informal, or “part of the culture” can still attract FBT if they provide a personal benefit and no exemption applies.

Common Examples of Fringe Benefits

Some of the most frequently reviewed FBT items include:

• Company car for private use If a vehicle was available for personal trips — even occasionally — it may trigger FBT.
• Entertainment and events Meals, drinks, celebrations, team outings, and tickets provided to employees can be taxable, depending on the circumstances.
• Accommodation or living support Assistance with rent, housing, or temporary accommodation may fall within FBT rules.
• Gym or wellness programs Benefits that support personal lifestyle, rather than work duties, are generally treated as fringe benefits.
• Reimbursed personal expenses Paying or reimbursing an employee for private costs commonly attracts FBT.

What the ATO’s Recent Guidance Signals

While PCG 2026/D2 is not an FBT‑specific guideline, it clearly reflects the ATO’s current compliance mindset, including:

• Greater scrutiny on arrangements that don’t align with economic reality
• Clear expectations around record‑keeping and evidence
• A risk‑based approach to compliance and review activity

For employers, this highlights the importance of being able to support FBT positions with clear documentation, consistent treatment, and well‑considered decision‑making.

What Employers Should Be Doing Now

Now that the FBT year has ended, employers should:

• Review benefits provided during the year Confirm what was offered — including one‑off or informal benefits.
• Reassess exemptions and concessions applied Ensure low‑value, infrequent, or work‑related benefits were classified correctly.
• Finalise and check records Strong documentation is essential if the ATO queries your FBT position.
• Prepare for lodgement Careful review before lodging helps reduce errors and follow‑up questions.

Make FBT Easy with The Marco Group

Navigating FBT — especially in a tightening compliance environment — doesn’t have to be difficult.

Partner with The Marco Group for clear guidance, proactive planning, and confident FBT compliance. We help you simplify your obligations, reduce risk, and stay focused on what matters most: supporting your people and strengthening your business.

The Macro Group Team

Date: 13/04/2026

The Macro Group Limited AFSL: 485843 Tax Agent Number 24 76 5236.

The information in this article contains general information only. We have not taken into consideration any of your personal objectives, financial situation or needs. Before taking any action, you should consider whether the general advice contained in this communication is appropriate to you having regard to your circumstances and needs and seek appropriate professional advice if you think you need it. We recommend that you consult a licensed or authorised financial adviser if you require financial advice that takes into account your personal circumstances