The fringe benefits tax year ends tomorrow, 31 March 2026. If you provide cars, entertainment, car parking or other benefits to staff, the next 24 hours and the weeks that follow matter more than usual this year. Here is what to capture before the year closes and where the ATO is looking.
The big change: plug-in hybrids
This is the first full FBT year since the plug-in hybrid rules changed. PHEVs provided under new arrangements from 1 April 2025 no longer qualify for the zero or low emissions vehicle FBT exemption. Arrangements with binding commitments in place before 1 April 2025 are grandfathered and keep the exemption.
The practical effect: if you put staff into plug-in hybrids during 2025-26 under new arrangements, you may have an FBT liability this year that you did not have before. Do not assume last year’s nil position carries over. Check the date and nature of each vehicle arrangement before you decide whether a return is needed.
What to do at 31 March
Three housekeeping items need to happen at year end; the first one cannot be backdated:
- Record odometer readings as at 31 March for all vehicles
- Refresh any logbooks that have expired
- Gather employee declarations for the benefits that require them
Odometer readings take minutes and save arguments later. Put it on tomorrow’s list.
Where the ATO is looking
The ATO has flagged two common errors: lodging nil returns despite benefits having been provided and misclassifying vehicle use. Private use of utes and dual-cab vehicles is a known hotspot; the assumption that a ute is automatically exempt does not stand up. The ATO has also expanded its data matching for FBT. If a work vehicle goes home each night, the private use question needs a real answer, not a default.
Beyond vehicles, it is worth a short review of whether benefits crept in during the year without anyone labelling them as such. Car parking, entertainment and loans to employees or associates are the usual suspects. A staff event, a season car park lease or an undocumented advance can each create an FBT question.
Lodgment dates for 2025-26
Two dates to put in the calendar now:
- 21 May 2026 if you self-lodge a paper return
- 25 June 2026 if you lodge electronically through a tax agent
If you provided no benefits and have no liability, consider lodging a notice of non-lodgment rather than simply not lodging. Given the ATO’s focus on nil and missing returns, telling them you have nothing to lodge is cleaner than silence. Current rates and thresholds are on the ATO’s FBT rates page.
A short year-end checklist
- Odometer readings recorded as at 31 March for every vehicle
- Expired logbooks refreshed
- Employee declarations collected
- PHEV arrangements reviewed against the 1 April 2025 cut-off
- Ute and dual-cab private use honestly assessed
- Car parking, entertainment and loan benefits reviewed for the full year
- Lodgment route chosen and the matching due date diarised
- Notice of non-lodgment considered if no liability
Before you act
This article is general information only and is not tax, legal or financial advice. FBT outcomes depend on the specific arrangements in place, so confirm your position for 2025-26 with a registered tax agent or check the official ATO guidance before acting.