A small nudge before the FBT year ends

FBT

The FBT year finishes on 31 March.

Before sending through your information, it’s worth taking a moment to nudge a few things into shape.

One area that often creates confusion is how items like meals, events, tickets and gifts are coded in your accounts.

Small details here can make a meaningful difference to the FBT outcome.

Where things commonly go off track

We often see items like these coded inconsistently:

• client lunches or drinks
• golf days or team events
• sporting tickets or corporate boxes
• staff or client gifts
• meals while travelling for work

The treatment of these can vary depending on the nature of the expense, who attended, and the purpose of the event.

Capturing those details upfront - and allocating them correctly - helps ensure you aren’t paying tax on things you shouldn’t be.

A simple way to get ahead

We’ve put together a short guide to help you quickly review your accounts before sending through your FBT information.

It covers:

• how to classify meals, activities and hospitality
• where gifts and travel typically sit
• the small details that help determine the FBT outcome.

The takeaway

Often it’s not the expense itself that matters most — it’s the context around it.

Taking a few minutes now to review these items can make the FBT process smoother and may help minimise the administrative burden of FBT time.

A few minutes reviewing this now can save a lot of back-and-forth later.

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