Effective FBT administration by government organisations

How to effectively manage FBT in your government organisation.

On this page

• Why effective FBT administration is important
• Summary of effective FBT administration measures

Why effective FBT administration is important

Fringe benefits tax (FBT) requires a broad organisational approach to adequately manage it. The way FBT is administered within an organisation will depend on the organisation's operating environment, particularly its structure and the number and type of benefits provided.

Entities should have the structure, processes and controls in place to enable them to meet their FBT obligations in an accurate, timely and cost-effective manner.

The primary obligations for an employer are to:

• administer their FBT obligations in a way that ensures full compliance with tax law
• determine and accurately report reportable fringe benefit amounts for their employees.

Well-managed FBT administration provides the following benefits:

• compliance with FBT legislation
• accurate capture of transactions that give rise to fringe benefits
• payment of FBT instalments on time
• accurate and timely reporting of reportable fringe benefits amounts
• ability to continually improve the management of FBT obligations by ensuring FBT returns are complete, accurate and lodged on time
• ability to deal with and minimise the impact of audit activity.

Summary of effective FBT administration measures

The following tables summarise an effective framework of practices your government organisation can adopt to manage its FBT obligations.

Although aimed mainly at government organisations, this information may assist staff responsible for FBT administration in any large public or private organisation.

Next step

Identify and assess FBT risks