The Australian Taxation Office (ATO) has recently intensified its focus on Fringe Benefits Tax (FBT), with a noticeable increase in audit and compliance activity.

This renewed attention is part of a broader effort by the ATO to ensure businesses and entities (including companies and trusts) are correctly identifying and reporting all fringe benefits provided to employees and directors (includes employees, directors, trustees, or business owners).

As a result, areas that may have previously gone under the radar are now being reviewed more closely.

FBT is an area where many businesses can unintentionally fall short, particularly where benefits are provided informally or outside of payroll systems.

Common examples include:

• Motor vehicles made available for private use (parked at home is available for private use)
• Entertainment such as meals, drinks, or events provided to staff
• Employee reimbursements or expense payments
• Use of company assets

Importantly, FBT obligations can arise even where no income tax deduction is claimed, and even if the benefit is provided infrequently.

Given the ATO’s increased scrutiny, we strongly recommend a proactive review of your FBT position to:

• Identify any benefits provided during the FBT year (1 April to 31 March)
• Ensure correct treatment and supporting documentation
• Consider available exemptions and concessions
• Minimise the risk of penalties, interest, and audit exposure

If you are unsure whether FBT applies to your business, or if it has been some time since your last review, we encourage you to get in touch with us. We can assist with a targeted review to ensure you remain compliant while optimising your tax position.

Please contact us if you would like us to review your FBT obligations or discuss your specific circumstances.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.