As an employer, you pay fringe benefits tax either annually or by quarterly instalments with your activity statements. Your payment must reach us on or before its due date to avoid interest and penalties.
You can pay FBT by either:
- credit card – conditions apply
- direct credit
- direct debit
- in person at an Australia Post outlet
- transfer from an overseas bank account.
® Registered to BPAY Pty Ltd ABN 69 079 137 518
If you have not previously paid FBT, or if the amount of FBT you had to pay in the previous year was less than the instalment threshold (currently $3,000), you must lodge your FBT return and pay your total annual FBT liability by 21 May (or the first business day after), unless you have made other arrangements.
If a tax practitioner is preparing and lodging your FBT return, a different payment date may apply.
All FBT payments can be rounded down to the nearest multiple of five cents.
Paying quarterly instalments
If you had to pay FBT of $3,000 or more in the previous FBT year, you must pay the tax quarterly with your activity statement. This is the case even if you estimate you will pay less than $3,000 in the current FBT year.
Your instalment amount will be shown on your activity statement and is a quarter of the FBT you had to pay for the previous year. For example, if you had to pay $20,000 FBT for the previous year, your quarterly instalments for the following year would be $5,000.
If your instalments do not cover your FBT liability for the year, you pay the difference when you lodge your annual FBT return. If your instalments are more than your annual liability, we refund you the difference (unless you have other taxes outstanding).
If you estimate that your FBT for the current year will be less than for the previous year, you may vary your quarterly instalments on your activity statement (provided you lodge it by the due date).
Be careful when varying your instalment amount because if you underpay your FBT liability for the year as a result, you may have to pay interest on the shortfall.
If you pay your FBT by instalments, you should lodge all your activity statements for the FBT year, including the March quarter activity statement, before lodging your FBT return. This enables us to update your FBT account.
If you cannot pay your FBT on time, you should phone us on 13 11 42 (8.00am–6.00pm, Mon–Fri) to discuss your situation.
You can incur substantial penalties if you provide false or misleading statements.
We impose a general interest charge on all outstanding amounts of FBT, including instalments of FBT. If you have varied an FBT instalment on an activity statement, you may also be liable for a general interest charge if you underestimate the instalment amount.