If you provide fringe benefits to your employees, it’s essential to understand your responsibilities regarding the Fringe Benefits Tax (FBT) return. In this guide, we’ll walk you through the steps on how to lodge your FBT return, pay your FBT, and what to do if you pay through quarterly instalments.

Do You Need to Lodge an FBT Return?

You must lodge an FBT return for the year if, during the FBT year (1 April to 31 March), you either:

• Have FBT payable on the fringe benefits you provided to your employees, or
• Paid FBT instalments through your activity statements.
• If you paid FBT instalments and are owed a refund, you’ll receive it after you lodge your return.

If You Don’t Need to Lodge a Return

If you’re registered for FBT but don’t need to lodge a return, you must send a Fringe Benefits Tax – Notice of Non-Lodgment (NAT 3094). This notifies the ATO to prevent them from requesting a return from you later. Ensure you send the notice by the time your return would normally be due.

Paying FBT Instalments Through Activity Statements

If you are liable for more than $3,000 in FBT for the year, you must pay quarterly FBT instalments the following year. The ATO will send you an activity statement each quarter that will show:

• The due date for lodging and paying your activity statement,
• Your FBT instalment amount.

When you lodge your annual FBT return, you can offset the instalments you’ve already paid against your actual FBT liability. If your instalments are:

• Less than your liability, you will need to pay the shortfall,
• More than your liability, the ATO will refund the excess.

Remember, you must lodge all activity statements for the FBT year, including the March quarter, before lodging your FBT return. Your FBT return won’t be processed until all your activity statements are lodged.

Due Date to Lodge and Pay Your FBT

You must lodge your FBT return and pay the FBT you owe by 21 May, unless:

• Your tax agent lodges your return electronically – in this case, the due date is generally 25 June. However, you must be an FBT client of the tax agent by 21 May to qualify for this extended deadline.
• We accept your request for an extension of time.
• If the due date falls on a weekend or public holiday, the due date will be the next business day.

Lodging Your Return Through a Tax Agent for the First Time

If you plan to lodge your FBT return through a tax agent for the first time, contact them before 21 May. The agent needs to add you to their FBT client list by this date to make you eligible for the June lodgment and payment date.

How to Pay FBT

There are various ways to pay your FBT. These include:

• BPAY,
• Credit or debit card, and
• Direct credit.

Make sure your payments reach the ATO by the due date to avoid interest and penalties.

Extensions of Time to Lodge or Pay

• If you need an extension of time to lodge or pay your FBT, and you are not lodging through a tax agent, contact the ATO on 13 28 66. 
• If you are lodging through a tax agent, reach out to them to discuss your extension request.

State and Territory Government Nominations

State and territory governments can nominate a state or territory body as an employer for FBT purposes. The nominated body then lodges FBT returns and pays FBT on behalf of the employer.

The final date for nominations, or for varying or revoking a previous nomination, is 21 May. If this date falls on a weekend or public holiday, the due date will be the next business day.

Final Thoughts

Lodging and paying your FBT return correctly and on time is crucial for compliance and to avoid penalties. Whether you’re lodging on your own or through a tax agent, it’s important to meet deadlines and ensure all your activity statements are up to date.

For more information on how to lodge and pay your FBT, and to ensure you’re staying on top of your responsibilities, always keep track of the important dates and payment methods available. If you’re unsure about any aspect, don’t hesitate to contact your tax agent or the ATO for assistance.

Stay compliant and manage your FBT obligations with ease by following this guide!