What is the FBT?
Fringe benefits tax (FBT) is a tax payable by employers in respect of fringe benefits provided to employees in the place of, or in addition to, salary or wages. Generally, employers can claim an income tax deduction for the cost of providing the fringe benefits and the amount of FBT incurred.
When is the FBT payable?
Employers generally pay the current year's FBT in four quarterly instalments if their previous year's FBT liability exceeds the FBT instalment threshold. Instalments for the FBT year are payable on 21 July, 21 October, 21 January and 21 April. A balancing payment (if any) is made when the annual FBT return is lodged. The annual return is due on 21 May.
If an employer is not required to pay by instalments, the whole FBT liability is paid when the annual FBT return is lodged.