FBT 2025 – What Employers Need to Know Before Lodging

The 2025 Fringe Benefits Tax (FBT) year officially closed on 31 March 2025, and employers across Australia should now be turning their attention to their FBT reporting and compliance obligations.

Whether you’ve provided just a few benefits throughout the year or maintain a structured benefits program for your staff, this is a crucial window to review records, check exemptions and ensure your business is fully prepared before lodgement deadlines hit.

FBT applies when non-cash benefits such as company vehicles, employee parking, entertainment, or reimbursements are provided to employees or their associates. Even if no additional salary is paid, these benefits can still trigger FBT liability. What’s important, FBT is the employer’s responsibility, and applies across a wide range of organisations including charities, schools, government bodies and not-for-profits.

There are also several key developments this year that may impact your obligations:

• The electric car exemption will no longer apply to plug-in hybrids purchased after 1 April 2025
• A Federal Court case may significantly alter how the ATO views what qualifies as a “commercial” car parking facility
• Record-keeping changes now allow the use of standard business records instead of statutory declarations for certain benefits

Even employers who don’t believe they’ve provided reportable benefits this year should still take time to assess their situation, including whether a ‘NIL’ return or notice of non-lodgement is required to stay compliant and avoid penalties.

Now is the right time to act, review your processes and ensure your records and reporting are in line with the latest guidance.

By taking a proactive approach, you can reduce risk, identify cost-saving opportunities through exemptions or concession and avoid surprises during an ATO review or audit.

Not sure if you need to lodge FBT Return or need help with preparing one? Our Team at Business Tax & Money House is here to help. Contact us today!