Why Ignoring FBT Could Invite the ATO Into Your Business Forever

Considering the FBT Return as "not optional". It's a Shield!

Every year, business owners across Australia miss one critical step that could cost them years of peace of mind: submitting a Fringe Benefits Tax (FBT) return.

Even if you think you don’t owe anything, skipping this task might be leaving your business wide open to lifetime ATO audits. Yes—lifetime.

Let’s talk about why FBT matters, how it protects you, and what to do now (before the ATO does it for you).

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FBT: It’s Not Just About Company Cars

You might be thinking, “I don’t provide fringe benefits.” But you'd be surprised.

Here are common FBT traps that many business owners fall into without realising:

🔹 Shouting the team Friday lunch? That’s an entertainment fringe benefit.

🔹 Giving staff gift cards at Christmas? That’s a classic fringe benefit.

🔹 Letting employees use a work vehicle on the weekend? That’s a classic fringe benefit for FBT.

If your business does anything nice for your team beyond their paycheck, there’s a chance you’re on the ATO’s radar—even if unintentionally.

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Why Submitting an FBT Return (Even Nil) Could Save You

Here’s where most people get it wrong: 

They assume that if they don’t owe any FBT, they don’t need to lodge a return.

Here’s the risk:

• If you DON’T lodge a return, the ATO can review and audit your business for FBT at any time—no time limit.

• If you DO lodge an FBT return (even a nil one), the ATO can only audit your FBT activity for up to 5 years.

  
  

That means something you did in 2020 could come back to bite you in 2030.

And the penalties? They’re not worth the gamble.

🎯 Ready to lock the ATO out of your past?

Book your FBT help now

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ATO Isn’t the Enemy, But They Are Watching

The ATO uses data matching and AI to detect unusual patterns in employee perks and business deductions. If something looks off—or incomplete—they can trigger an FBT audit, and it won't be a quick one.

Submitting your return isn’t about playing it safe. It’s about protecting your time, your money, and your peace of mind.

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So... Do You Need to Lodge? Ask Yourself:

Here’s a quick checklist to keep your business safe:

• Do I provide any non-cash perks to staff?

• Are there vehicles in use by employees outside of work hours?

• Have I reimbursed personal expenses for team members?

• Do I cover things like school fees, travel, accommodation or car parking for staff?

  
  

If any of these sound familiar, you may need to lodge. And if you’re unsure, it’s always better to ask.

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Don’t Let FBT Catch You Off Guard – We Can Help

At ProfitCloud, we make FBT simple.

Whether you need help calculating what’s owed, or you just want someone to file a nil return and help close the door on audits, we’ve got you covered.

FBT season doesn’t have to be stressful. Just proactive.

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Quick Recap: Why You Need to Care

✅ Lodging FBT keeps the ATO out of your books long-term 

✅ Even nil returns protect your business 

✅ Many “normal” employee perks are actually fringe benefits 

✅ Help is easy to access – don’t do this alone

🎯 Ready to lock the ATO out of your past?

Book your FBT help now