With the 2025 fringe benefits tax (FBT) year wrapping up on 31 March, we're reminding employers of some changes that might impact their FBT obligations.
Alternative record keeping changes
- This FBT year and onwards, employers can use existing records instead of travel diaries and declarations for some fringe benefits. Your clients may prefer to continue using the current approved forms or have the choice of using a combination of both methods for each employee and each benefit.
- If using existing corporate records, they need to meet the minimum required information at the time of lodging the FBT return.
- Keeping the right records ensures employers can correctly calculate the taxable value of the benefit and support their FBT position.
Plug-in hybrid electric vehicle changes
- The FBT exemption for plug-in hybrid electric vehicles (PHEVs) ends on 31 March, so this may be the last year that employers can claim the exemption.
- An employer can continue to apply the exemption if:
- that PHEV was used, or available for use, before 1 April 2025 (and that use was exempt), and
- they have a financially binding commitment to continue providing private use of the vehicle on and after 1 April 2025.
If you have employer clients' that provided fringe benefits to their staff between 1 April 2024 and 31 March 2025, make sure they're prepared and are keeping the appropriate records to support their FBT position.
Find more information on FBT to support your employer clients to meet their obligations.