ATO FBT Crackdown 25

ATO announces audit crackdown for the 2025 FBT year

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With the 2025 FBT year wrapping up on 31 March, it’s important you’re on track to meet your obligations and are prepared for any changes.

Recent announcements by the ATO have made it clear that FBT represents a key audit target for the 2025 FBT year, with the FBT ‘gap’ having grown to nearly $2 billion. As a result, the ATO is set to embark on its most aggressive FBT audit campaign in many years.

Follow these steps to help you get it right for your business:

  • Companies and trusts that own motor vehicles should ensure they record their odometer reading at 30th March 2025 as it may give greater options when calculating any car fringe benefits.
  • Work out if you have an FBT liability for fringe benefits you’ve provided to your staff or their associates between 1 April 2024 and 31 March 2025.
  • If you have an FBT liability you need to lodge an FBT return and pay the amount due by 21 May 2025.
  • Let the ATO know if you don’t need to lodge an FBT return and you’re currently registered for FBT.
  • Report each employee’s reportable fringe benefits amount in their end of year payment information.

What’s changed with FBT?

From this FBT year and onwards, there are a few changes you should know about:

  • You can use existing records instead of travel diaries and declarations for some fringe benefits. If using existing corporate records, they need to meet the minimum required information at the time of lodging your FBT return. Keeping the right records ensures you can correctly calculate the taxable value of the benefit and support your FBT position.
  • The FBT exemption for plug-in hybrid electric vehicles ends on 31 March. 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.

For more information on FBT in general visit ato.gov.au/fbt

If you need any help with FBT or getting your head around it, don’t hesitate to get in touch with us at STS Accounting.