Your Not for Profit’s Guide to Fringe Benefits Tax.

Your Not for Profit’s Guide to Fringe Benefits Tax.

Fringe Benefits Tax (FBT) is an important consideration for Not for Profit organisations that provide benefits to employees beyond their regular salary.

The Australian Taxation Office (ATO) requires certain benefits—such as salary packaging, meal entertainment, and vehicle use—to be reported and taxed appropriately.

The FBT year ends on 31 March, and with the 21 May lodgement deadline fast approaching, now is the time to review your Fringe Benefits Tax (FBT) obligations. Ensuring compliance for your Not for Profit organisation assists you in avoiding penalties, and taking full advantage of any available concessions or exemptions.

To simplify the process, we’ve created this checklist to assist Not for Profits in staying on top of their FBT responsibilities with confidence.

1. Check Your FBT Registration

• Are you registered for FBT? If you’re unsure, check with the ATO or your accountant.
• Are you eligible for an FBT rebate or exemption? Some Not for Profit organisations qualify for an FBT rebate or full exemption, reducing their FBT liability. Ensure you are correctly registered to take advantage of these benefits.
• Are there any limits or caps? Some organisations have thresholds that change how much they need to pay.

2. Review the Benefits You Provide & Keep Records

• Common benefits that may attract FBT:
  • Salary packaging (e.g., mortgage payments, school fees, work-related expenses)
  • Meal entertainment (e.g., staff lunches, catering for events)
  • Motor vehicles (e.g., company cars used for personal trips)
  • Novated leases (e.g., salary-sacrificed car leasing arrangements)
• Keep essential documents handy:
  • Signed FBT declarations from employees
  • Receipts for claims
  • Loan or lease agreements if relevant
• Check payroll details:
  • Payslips should reflect salary-packaged amounts correctly.
  • Ensure records meet ATO requirements in case of an audit.

4. Work with a Tax Accountant

• Get professional support to ensure your FBT lodgement is done correctly.
• Double-check calculations to avoid surprises.
• Stay updated on FBT changes that may impact your organisation.

Need a Hand?

Managing FBT doesn’t have to be overwhelming. By staying organised and seeking the right advice, your organisation can meet its obligations smoothly. If you need support, The Breakthrough Office is here to assist—let’s chat!

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