FBT year-end review checklist (AU)
FBT is high-cost and high-risk — the top marginal rate gross-up makes errors expensive. This checklist covers the 12 areas most commonly tested on ATO FBT reviews.
This is a 12-step FBT year-end review checklist for the Australian FBT year ended 31 March. It covers the main benefit categories (cars, entertainment, LAFHA, expense payment, exempt benefits), reportable fringe benefits, and lodgement by 21 May (or 25 June if lodging through a tax agent). Use it in April each year.
The checklist
Identify all benefits provided 1 April – 31 March
Gather the complete list of benefits provided to employees (including associates) during the FBT year from payroll, AP, and expense systems.
Car fringe benefits — method selection
For each car, compare statutory formula and operating cost methods. Operating cost requires a valid logbook (12 consecutive weeks in a 5-year cycle).
Electric vehicle exemption
Confirm eligibility for the electric car exemption — zero or low emission, first held and used after 1 July 2022, under the LCT threshold.
Meal entertainment
Choose an election method (actual, 50/50, or 12-week register). Apply the minor benefits exemption where available.
Living Away From Home Allowance
Confirm the 12-month maintenance of Australian home rule and review substantiation of food and accommodation components.
Expense payment fringe benefits and otherwise deductible rule
Apply the otherwise deductible rule where the employee would have had a deduction. Capture declarations.
Exempt benefits — laptops, phones, protective clothing
Identify and document exempt benefits (portable electronic devices, tools of trade, protective clothing, minor benefits under $300).
Car parking and remote area exemptions
For car parking, check the commercial parking station threshold. For remote area housing, confirm eligibility.
Employee contributions
Reconcile employee contributions against the benefit value. Contributions reduce the taxable value.
Reportable fringe benefits
Calculate each employee's reportable fringe benefits amount where the grossed-up taxable value exceeds $2,000. Report in STP.
Salary packaging compliance
Review novated leases, salary packaged cars, and FBT-rebatable employer packaging for compliance with effective salary sacrifice rules.
Prepare and lodge the FBT return
Prepare the FBT return and lodge by 21 May (self-lodgers) or 25 June (tax agent lodgers). Pay any liability on the due date.
When this checklist applies
Use this checklist in April each year — after the 31 March FBT year ends and before the lodgement deadline. For large employers, start the data-gathering phase earlier.
Common pitfalls
- Missing car fringe benefit method election — default is statutory formula
- Inadequate logbooks invalidating the operating cost method
- Not applying the EV exemption (and its reportable amount interaction)
- Treating entertainment inconsistently between FBT and income tax deductibility
- Missing reportable fringe benefit reporting in STP finalisation
Run this checklist on a real matter
Quillio produces FBT year-end workpapers, benchmarks method selections, and generates the reportable fringe benefits schedule. See /practice-areas/tax-lawyers or start a free trial.
FBT is technical and concessions change frequently. Use this checklist as a workpaper guide and confirm the current ATO position on each concession.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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