Better practice 1: better practice checklist

The following checklist can help entities apply a risk management framework to the administration of FBT.

The list is not intended to be prescriptive, as the measures taken by an individual entity to identify and manage its risks will depend on its particular operating environment.

Entities that can answer 'Yes' to most of these questions are likely to be using risk management practices effectively in relation to their FBT administration. If most of the answers are 'No', entities should consider whether there is an opportunity to review their existing FBT risk management practices.

Indicators of better practice


Has the entity formally assessed or reviewed its FBT risks in the last 12 months?


Have FBT risks been linked to existing controls and any gaps identified?


Is internally created documentation relating to the FBT treatment of significant items regularly reviewed to determine whether it remains relevant to current entity practice and is consistent with current legislation?


Are ATO private rulings regularly reviewed to determine whether they are in accordance with current legislation and address current entity practice?


Are FBT implications considered when making decisions regarding staff benefits, allowances, remuneration packages, certified agreements (CAs) and Australian workplace agreements (AWAs)?


Is there a process whereby FBT staff are advised of benefits being provided to new employees and new benefits being provided to current employees? (This is particularly important when entities have a large number of employees start at once due to such things as an administrative arrangement order).


Is there a process for FBT staff to be advised of employees ceasing employment or no longer receiving benefits?

This is important as it is usually more difficult to obtain information once an employee has left the entity, and can be even more difficult when a large number of employees leave together due to such things as an administrative arrangement order.


    Last modified: 23 Jul 2015QC 18627