Before lodging electronically, FBT, the key step is to confirm what employee-related expenses exist and whether they create an FBT obligation. This is how we approach it with clients.
1. Gather and review employee-related expenses
We start by identifying expenses that may relate to employees.
In practice, we focus on areas where FBT exposure most often sits:
- vehicle costs where a car is available for private use
- reimbursements or payments covering personal expenses
- benefits provided outside payroll
- travel & entertainment
For each item, the key is to confirm what it actually represents, link it to an employee where relevant, and assess whether there is a private benefit involved.
This is where FBT exposure is identified.
2. Confirm your FBT position
Once those items are reviewed, the next step is to make a clear call.
Either:
- an FBT liability applies – you must register and lodge FBT return
- or a nil return is appropriate if you are registered
Even where nothing obvious appears, this step should still be completed before lodgment.
Where we focus our time
Ensuring compliance with FBT is about identifying the right items and confirming how they should be treated.
Need a second review?
If you’d like a second view before lodgment, we can go through your accounts and confirm your FBT position.
