Payroll, super and FBT

FBT instalment

An FBT instalment is a quarterly part-payment of an employer's expected fringe benefits tax for the year, reported on the business activity statement. The ATO works out the instalment amount from the employer's previous FBT return, so the employer pays during the year instead of in one amount after the FBT year ends. The instalments paid are credited against the employer's final FBT liability when the FBT return is lodged. The instalment can be varied when the employer expects the benefits to change materially. Employers who owe a smaller amount may not need to pay instalments, and the ATO page states who is covered.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.