The 2026 Fringe Benefits Tax (FBT) year runs from 1 April 2025 to 31 March 2026, and many employers are now entering the final stage of reviewing benefits provided to staff.
For childcare providers and not-for-profit organisations, FBT can be particularly complex due to the range of benefits offered to employees and the concessions available to certain entities. Understanding your obligations before the end of the FBT year can help avoid penalties and ensure you take advantage of available exemptions.
Preparing for the 2026 Fringe Benefits Tax (FBT) Year
Employers should keep the following important deadlines in mind:
- 31 March 2026 – End of the 2026 FBT year. All benefits must be identified and documented by this date.
- 21 May 2026 – Due date for lodging and paying the FBT return if lodging by paper.
- 25 June 2026 – Due date if lodging through a registered tax agent.
Ensuring your records are finalised by the end of March will make the lodgment process significantly easier.
Common Fringe Benefits for Childcare and Not-for-Profit Employers
Many employers do not realise that everyday workplace arrangements may trigger FBT. Some common benefits include:
Motor Vehicles
Company vehicles available for private use are one of the most common FBT items. Employers should ensure:
- Logbooks are current and valid
- Odometer readings are recorded as at 31 March 2026
- Any employee contributions are documented
Employee Meals and Entertainment
Meals provided to employees, particularly during meetings or events, may be subject to FBT depending on the circumstances and method of calculation.
Salary Packaging Arrangements
Many not-for-profit organisations offer salary packaging as part of employee remuneration. These arrangements may involve:
- Living expenses
- Meal entertainment
- Novated leases
Certain not-for-profit organisations may also be eligible for FBT exemptions or concessional caps, making salary packaging a valuable employee benefit when managed correctly.
Childcare-Related Benefits
For childcare operators, employee discounts or benefits relating to childcare services may have FBT implications depending on how they are structured.
Important Considerations for Not-for-Profit Organisations
Some not-for-profit employers in Australia can access specific FBT concessions, including:
- FBT exemptions for certain public benevolent institutions and health promotion charities
- FBT rebate eligibility for other not-for-profit entities
These concessions can significantly reduce or eliminate FBT liability, but eligibility and compliance requirements must be carefully reviewed each year.
Steps to Take Before 31 March 2026
To prepare for the end of the FBT year, employers should:
- Review all employee benefits provided during the year
- Ensure vehicle logbooks and odometer readings are updated
- Confirm salary packaging arrangements are properly documented
- Gather receipts and supporting documentation for benefits provided
- Speak with your accountant to ensure any available exemptions or concessions are applied correctly
How Professional Advice Can Help
FBT can be one of the more complicated areas of our tax system, particularly for childcare providers and not-for-profit organisations where exemptions and salary packaging arrangements are common.
Working with an accountant experienced in these sectors can help ensure your organisation remains compliant while maximising available concessions.
With the 2026 FBT year ending on 31 March, now is the ideal time to review your records and ensure everything is ready before lodgment deadlines arrive. If you would like assistance reviewing your FBT position or preparing your 2026 FBT return, contact our Hopscotch Accounting team today to arrange a consultation.
