Fringe Benefits Tax (FBT) is a ChangeGPS app that helps accountants prepare FBT returns for employer clients. The app covers all benefit categories recognised by the ATO, calculates the taxable value and gross-up amounts for each benefit, generates employee declarations, and produces the completed FBT return ready for lodgement. The FBT year runs from 1 April to 31 March.
FBT is available in Australia.
What Fringe Benefits Tax does
The FBT app calculates the FBT liability for each benefit category provided to employees, applying the correct gross-up rate (Type 1 or Type 2) and the current FBT tax rate of 47%.
The app covers all eight benefit categories: Motor Vehicle, Car Parking, Expense Payment, Housing, Loan, Meal Entertainment, Property, and Residual Benefits.
FBT calculates the Reportable Fringe Benefits Amount (RFBA) for each employee where the total taxable value of benefits exceeds $2,000, which must be reported on the employee's payment summary.
The app applies the Electric Vehicle (EV) exemption for eligible zero or low-emission vehicles from FY2025, where the vehicle's value is under the luxury car tax threshold.
FBT generates employee declarations for the relevant benefit types, which employees must sign to confirm the benefit details.
The app produces a completed FBT return document that can be reviewed, exported, and delivered to the client.
Who should use Fringe Benefits Tax
The FBT app is designed for accountants who prepare FBT returns for employer clients that provide non-cash benefits to employees. It is relevant for any employer — individual, company, or trust — that provides benefits such as a company car, employee loans, expense reimbursements, housing, or entertainment.
Key features
Eight benefit categories — Motor Vehicle, Car Parking, Expense Payment, Housing, Loan, Meal Entertainment, Property, and Residual Benefits, each with their own calculation method.
Statutory formula for motor vehicles — Calculates the taxable value of a car benefit using the 20% statutory rate applied to the base value of the vehicle.
Electric Vehicle exemption — Automatically applies the FY2025+ EV exemption for eligible zero or low-emission vehicles valued under the luxury car tax threshold ($89,332 in FY2025).
Gross-up rates — Applies the correct gross-up rate: Type 1 (2.0802) for benefits associated with a GST credit entitlement, and Type 2 (1.8868) for benefits with no GST credit entitlement.
Benchmark interest rate for loans — Applies the ATO benchmark interest rate for the relevant FBT year to calculate the taxable value of loan benefits.
50/50 Meal Entertainment split — Supports the 50/50 split method for meal entertainment benefits where applicable.
Reportable Fringe Benefits Amount — Calculates and reports the RFBA for each employee exceeding the $2,000 threshold.
Employee declarations — Generates declarations for employees to sign, covering the relevant benefit categories.
GST configuration — Configures GST adjustments for employee contributions to benefits.
Issues and recommendations — Flags compliance issues and recommendations in Step 3 before the return is finalised.
CIM client import — Imports employer details from the Client Import Manager (CIM) to pre-fill the employer information in Step 1.
How Fringe Benefits Tax fits into ChangeGPS
Tax Plan — FBT liability is a deductible expense for the employer. FBT amounts can be included in the Tax Plan as a deduction for company or trust clients.
Client Import Manager (CIM) — Employer details can be imported from CIM to pre-fill the client information in Step 1.
Getting started
Navigate to the Fringe Benefits Tax app from the ChangeGPS dashboard and select New FBT Return.
In Step 1 — Client Details, enter or import the employer's details and select the FBT year.
In Step 2 — Employee Benefits, add employees and enter the benefits provided to each employee across all relevant benefit categories.
In Step 3 — FBT Configuration, configure GST adjustments, review important dates, and review the issues and recommendations summary.
In Step 4 — Preview, review the completed FBT return, generate employee declarations, and export or deliver the documents.
Need help?
If you have questions about the FBT app or need assistance with a specific benefit calculation, reach out to our support team through the chat widget or contact your account manager.