From 1 April 2024, the Australian Taxation Office (ATO) has introduced new flexibility for employers preparing their 2025 Fringe Benefits Tax (FBT) returns. This change gives businesses a practical opportunity to simplify their record-keeping requirements, saving time and reducing paperwork.
What’s Changed?
Previously, employers were required to keep specific declarations or travel diaries from employees when reporting certain fringe benefits — for example, business-related travel. Under the new rules, employers may now rely on existing corporate records instead of those traditional forms.
This means your business might no longer need employees to complete separate travel diaries or declaration forms — as long as your internal business records can provide the necessary details.
What Kinds of Benefits Does This Apply To?
The ATO has issued legislative instruments outlining the exact circumstances in which alternative records can be used. These include certain fringe benefits where travel, vehicle use, or reimbursement are involved. Examples of acceptable alternative records include:
- Travel reimbursement claims
- Work schedules and rosters
- Corporate credit card statements
- Vehicle logbooks maintained for other business purposes
- Internal travel approval forms
A full list and explanation of eligible records can be found on the ATO website and in the explanatory materials provided alongside the legislative instruments.
But Be Careful: Not All Records Will Qualify
While this reform brings welcome flexibility, employers must ensure their existing records are:
- Accurate and complete
- Clearly linked to the fringe benefit provided
- Aligned with ATO’s guidelines
If the ATO deems the alternative records insufficient, you may lose the benefit of the tax concession and face reassessment. It’s important to evaluate whether your systems currently meet the compliance standards or need improvement.
How Boa & Co. Can Help You Prepare for 2025 FBT
At Boa & Co. Chartered Accountants, we help businesses like yours stay ahead of regulatory changes while minimising compliance risk. With this new FBT record-keeping rule, we can:
- Review whether your business records qualify as acceptable alternatives
- Help you implement efficient, ATO-compliant record systems
- Streamline your 2025 FBT return preparation
- Reduce your FBT liability by maximising exemptions
- Liaise with the ATO on your behalf if further clarification is needed
Ready to Make Your 2025 FBT Process Easier?
Whether you’re an SME, a growing company, or an established employer, we’re here to help you make the most of this change and ensure your FBT reporting is accurate, efficient, and audit-proof.
Get in touch with us today to discuss how this new rule applies to your business. Call 1300 952 286, email [email protected] or visit www.boanco.com.au for more information.
Let’s work together to simplify your tax reporting and keep your business compliant with confidence!