FBT: Record Keeping and Plug-In Hybrid Exemption Changes

As the 2025 Fringe Benefits Tax (FBT) year has just come to a close (on 31 March), it’s an ideal time for employers to review their FBT obligations and ensure they’re up to date with the latest guidance.

The Australian Taxation Office (ATO) has issued a timely reminder highlighting several important changes and focus areas that may impact how employers report and manage their FBT responsibilities. With increased scrutiny on compliance and evolving tax rules, staying informed is essential to avoid unexpected liabilities and ensure accurate reporting for the year ahead.

Alternative Record-Keeping Changes

To stay up to date with these changes the ATO has a vast amount of information about FBT Alternative Record Keeping options.

• For the 2025 and succeeding FBT years, employers can use existing records for some fringe benefits instead of travel diaries and declarations. Despite this, employers may prefer to continue using the currently approved forms or have the choice of using a combination of both methods for each employee and each benefit

• If using existing corporate records, employers need to meet the minimum required information at the time of lodging their FBT return.

Plug-in Hybrid Vehicle Changes

These Hybrid Exemption Changes  apply to plug-in hybrid vehicles (PHEVs) from 1 April 2025.

The Eligibility for the FBT Exemption for PHEVs; broadly ended on 31^st March 2025: so the 2025 FBT year may be the last year that employers can claim the exemption.

However, an employer can continue to apply the exemption if:

• That PHEV was used or available for use, before 1 April 2025 (and that use was exempt): and

• They have a financially binding commitment to continue providing private use of the vehicle on and after 1 April 2025.

Employers that provided fringe benefits to their staff between 1 April 2024 and 31 March 2025 should ensure they are keeping suitable records in support of their FBT status. Maintaining these records will ensure employers can calculate the taxable value of the benefit correctly and support their FBT claim.

With one FBT year ending and another one just beginning it is important to be aware of the changes to record-keeping and PHEV’s that may affect FBT obligations. 

We are here and happy to assist if you have any questions about the FBT changes, or if you would like some assistance or further advice.

Reach out to us today at Oracle Accounting & Tax Advisers today.

Written by Lucie Hall
Senior Accountant
Oracle Accounting Erina

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