The Fringe Benefit Tax traps

HomeInsights

The Fringe Benefit Tax traps. 

In late 2022, the Government introduced a concession that enables employers to provide some electric vehicles to employees without incurring the 47% fringe benefits tax (FBT) on private use.  

The exemption applies to the use of electric cars, hydrogen fuel cell electric cars or plug-in hybrid electric cars if:

  • The value of the car is below the luxury car tax (LCT) threshold for fuel efficient vehicles ($89,332 for 2023-24 financial year) at the time it is first sold in a retail sale; and

  • The car is both first held and used on or after 1 July 2022.


If your business is planning on acquiring an electric vehicle, be aware that from 31 March 2025, the FBT exemption will no longer apply to plug-in hybrid electric vehicles unless the vehicle met the conditions for the exemption before this date and there is already a binding agreement to continue to use the vehicle privately after this date.  

FBT
Downloadable
Resources

FBT Questionnaire FBT Questionnaire
FBT Odometer Reading FBT Odometer Reading
FBT Entertainment Schedule FBT Entertainment Schedule
FBT Motor Vehicle Schedule FBT Motor Vehicle Schedule
FBT Expense Benefits FBT Expense Benefits

The problem areas 



Other FBT problem areas



Helping you meet your FBT obligations.


GET IN TOUCH FOR YOUR FBT RETURN QUOTE AND PREPARATION GET IN TOUCH FOR YOUR FBT RETURN QUOTE AND PREPARATION


3 Mar

The Fringe Benefit Tax traps

The Fringe Benefits Tax year (FBT) ends on 31 March. We explore the problem areas likely to attract the ATO’s attention.


READ MORE READ MORE
1 Mar

Fringe Benefits Tax - All the need-to-knows

On 31 March, the Fringe Benefits Tax (FBT) year ends. With the ever increasing budget deficits, the ATO will be reviewing whether all employers who should be paying FBT are, and that they are paying the right amount. Who needs to lodge a FBT return? Find out here.


READ MORE READ MORE
26 Feb

What is a Car Fringe Benefit?

A car fringe benefit commonly arises when an employer makes a car they own or lease available for the private use of an employee.


READ MORE READ MORE

Related News

2 Apr

Payday Super: Changes for Employers

Treasury has released exposure draft legislation for Payday Super that will require employers to pay superannuation at around the same time as salary and wages are paid to the employee. The changes are proposed to commence from 1 July 2026.


READ MORE READ MORE
26 Mar

Federal Budget 2025/2026

The Government’s big moment in the 2025-26 Federal Budget was the personal income tax cuts. Income tax cuts are a dazzling headline but in reality they deliver a tax saving of up to $268 in the 2026-27 year, with a tax saving of up to $536 from the 2027-28 year.


READ MORE READ MORE
11 Mar

Your 2025 EOFY Game Plan

Smart and strategic tax planning for business.


READ MORE READ MORE