How to Register for FBT in Australia: The Complete Guide for Startup Founders

Offering perks to attract top talent can feel like a smart move — until the ATO comes knocking. If you’re giving your team anything beyond their salary, you could be on the hook for Fringe Benefits Tax (FBT), whether you realise it or not.

Take Shoes of Prey, once one of Australia’s most promising startups. They scaled fast and built a strong team culture with perks like laptops and travel incentives. But by 2016, those unreported benefits triggered an ATO audit — and with it, painful penalties that hit just as the business was struggling to stay afloat.

FBT isn’t just a technicality — it’s a compliance risk that can blindside growing businesses. Here’s how to register the right way and stay ahead of it.

What Is FBT (Fringe Benefits Tax)?

FBT is a tax employers pay on certain benefits they provide to their employees — or their employees’ associates — in place of or in addition to salary or wages. Unlike income tax, which is paid by the employee, FBT is paid by the employer.

Common fringe benefits include:

• ✓ Company cars used for private purposes

• ✓ Low-interest or interest-free loans

• ✓ Entertainment (e.g. meals, tickets, holidays)

• ✓ Reimbursements of private expenses

• ✓ Salary packaging arrangements

• ✓ Gym memberships or club fees

• ✓ Housing or accommodation

Even small things can trigger FBT — like giving a staff member a gift card or paying for their personal mobile plan. If it’s not directly related to business, it may be taxable.

Why FBT Registration Matters for Founders

1. It’s a Legal RequirementIf you provide fringe benefits, you must register for FBT — and lodge an annual return. Ignoring it could result in fines, interest, or ATO audits.

   
   

2. It Protects You During GrowthWhat starts as a few perks can quickly become a liability. Registering early and reporting correctly creates a clear audit trail as you scale.

   
   

3. Helps You Stay Competitive on PerksOffering great employee benefits is a huge drawcard. Registration lets you manage perks legally, confidently, and creatively.

   
   

4. Penalties HurtFBT penalties can be brutal — up to 75% of unpaid tax if deemed intentional. That’s a hit no startup wants to take.

   
   

5. It’s Often MissedMost founders don’t realise they’re providing taxable benefits — especially when reimbursing staff. Getting this right early avoids major clean-up later.

What You’ll Need Before You Register

Have this ready:

• Your ABN and business structure info

• ATO Online access (myGovID + Online services for business)

• A list of any benefits you provide (cars, reimbursements, entertainment, etc.)

• Number of employees receiving benefits

• The date you first started providing fringe benefits (if retrospective)

The clearer your records, the easier it is to register and keep reporting clean.

How to Register for FBT in Australia:

Step-by-Step

Step 1: Confirm You’re Providing Fringe Benefits

If you provide anything of value that isn’t salary or super, check if it’s considered a fringe benefit under ATO guidelines.

Mentor Tip: Reimbursements for personal expenses (fuel, phone bills, insurance) often get overlooked — but they count.

Step 2: Register for FBT with the ATO (Online / Phone / Agent)

This is the core ATO FBT registration process (fringe benefits tax registration):

• Register online via ATO Online services for business

• Or call 13 28 66

• Or ask your registered tax agent to do it

You’ll need to:

1. Log in → Manage tax registrations → Fringe Benefits Tax

2. Enter business details and start date for benefits

3. Confirm and submit

Mentor Tip: Even if you haven’t provided benefits yet, you can register in advance to stay compliant as you grow.

Step 3: Set Up a Fringe Benefits Record-Keeping System

Start tracking:

• Benefit type (car, entertainment, loan, reimbursement, etc.)

• Recipient (employee/associate) and date

• Cost/value and supporting evidence (invoices, logs)

• Whether it’s exempt or reportable

• Calculation method (e.g., car — statutory / operating cost)

Use ATO calculators where available (e.g., for cars).

Step 4: Prepare to Lodge Your Annual FBT Return

The FBT year runs 1 April → 31 March. Each year, if registered, you must:

• Lodge an FBT return (generally due 21 May)

• Pay any FBT liability (or reconcile against instalments)

• Report RFBA (if applicable) on employees’ STP income statements

Mentor Tip: Even if you don’t owe FBT, lodging a nil return protects you from ATO questions or penalties.

FBT Year & Due Dates

(How to Lodge an FBT Return)

Timeline overview

• 1 Apr – 31 Mar: FBT year

• From April: Prepare values, reconcile records, finalise calculations

• By 21 May: Lodge FBT return and pay liability (agent lodgement may have concessional dates)

• Quarterly: Some employers pay FBT instalments via activity statements and reconcile at year-end

How to lodge (micro-steps)

1. Reconcile benefits, exemptions, and taxable values (Type 1 vs Type 2)

2. Complete the FBT return in ATO Online services for business (or via your agent)

3. Lodge and pay by the due date (or reconcile instalments)

4. Prepare RFBA details for payroll (if applicable) and update STP

   
   

Post-Registration Checklist (Do This Next)

• Confirm registration visible in ATO Online (FBT account active)

• Map benefits in accounting/payroll (Type 1 vs Type 2, RFBA fields)

• Create templates for entertainment logs, car logs, reimbursements

• Set reminders: quarterly instalments (if applicable) and 21 May annual due date

• Train your team on what’s taxable and how to submit evidence

• Add to your compliance calendar alongside PAYG, GST/BAS, and STP finalisation

• Review perks policy (gift cards, travel, reimbursements) to reduce accidental FBT exposure

What It Costs and How Long It Takes

• Registration: Free via ATO Online

• FBT rate (2025): 47%

• Typical tracking time: 1–3 hours per quarter if your system is set up

• Professional support (optional):

  • Bookkeeper / BAS agent: $200–$400/quarter

  • FBT specialist accountant: $500–$2,000 annually

Money-Saving Tip: Keep records in real time and use accounting tools (Xero/MYOB) with FBT fields enabled.

Common Mistakes Founders Make

Mistake 1: Thinking FBT Doesn’t Apply

Even small startups are subject to FBT if they offer non-cash perks. It’s not about size — it’s about what you give.

Mistake 2: Missing Registration

You can’t lodge an FBT return or claim certain deductions without being registered. This gap causes audit pain later.

Mistake 3: Not Tracking Benefits

If you don’t log benefits as they occur, you’ll struggle to report accurately — and may underpay or overpay tax.

Mistake 4: Reporting Late or Not at All

The ATO doesn’t like late lodgements. Interest and penalties stack fast, especially for high-value benefits like cars or bonuses.

Mistake 5: Ignoring Exemptions/Concessions

You might be eligible for concessions (e.g., minor benefits) but miss out by not applying rules correctly.

Here’s the thing: the ATO doesn’t care if it was an accident. If you’re giving perks and not registered, they’ll treat it as non-compliance — and you’ll pay for it.

What to Do Right Now

Download: Financial Support Guides and checklists for employers — step-by-step what to do and track. [ProDesk.com]

Need help? Book Noize — design systems that scale, stay compliant, and support growth. [Noize.com.au]

Get the Startup Deck — your all-in-one roadmap for systems, tax, team, marketing and growth. [theStartupDeck.com]

The Bottom Line

FBT might seem like “big company” stuff — but it applies to startups more often than you think. If you're giving your team more than just a salary, registering is essential.

Do it early. Track it properly. Avoid the mess.

FAQs — Fringe Benefits Tax (Australia)

How do I register for FBT with the ATO?

Register via ATO Online services for business, call 13 28 66, or ask your tax agent. Go to Manage tax registrations → Fringe Benefits Tax, enter your start date and submit.

Do I need to register for FBT if I offer small perks?

Possibly. If the benefits are minor and infrequent, they may be exempt — but you should still assess and document. If you regularly provide non-cash perks, register.

What is the FBT year and when are returns due?

The FBT year is 1 April – 31 March. Returns and payments are generally due by 21 May (agent concessions may apply).

How do I lodge an FBT return?

Reconcile your benefits, complete the FBT return in ATO Online services (or via your agent), lodge, and pay by the due date. If you pay instalments, reconcile at year-end.

What is RFBA and how do I report it?

Reportable Fringe Benefits Amount appears on an employee’s STP income statement (myGov) if they receive reportable benefits above the threshold. Configure RFBA in your payroll and include it in STP finalisation.

What are Type 1 vs Type 2 benefits?

Type 1: You could claim GST credits on the benefit (higher gross-up).

Type 2: No GST credits (lower gross-up). This affects taxable value and RFBA.

Are there common exemptions that can reduce FBT?

Yes — minor benefits, otherwise deductible rule, and specific work-related items (among others). Each has conditions; keep evidence.

Do I pay FBT quarterly or annually?

You lodge annually, but some employers pay quarterly instalments via activity statements, then reconcile at year-end.

Does entertainment always trigger FBT?

Entertainment is a high-risk category. Keep detailed records (who, what, why) and apply the correct method. Some items may be exempt; many aren’t.

We provide a car — what should we track?

Track private use, method (statutory vs operating cost), dates, odometer logs, and expenses. Use ATO car benefit calculators to assess taxable value.