Time is ticking.
Your cap resets soon.
The FBT year end catches people out every year. And if you are salary packaging, that deadline matters more than you might think.
The Fringe Benefits Tax year runs from 1 April to 31 March. Once 31 March passes, your salary packaging budget resets. Any unused amount does not carry over.
That means unclaimed savings can simply disappear.
If you still have part of your cap available, here are five practical ways to make the most of your salary packaging before FBT year end.
1. Check Your Remaining Balance Early
This sounds simple. But it is the step most people skip.
Before doing anything else, log in and check how much of your annual limit is left. Many employees are surprised to find they still have hundreds, or even thousands, of dollars available under their cap.
For eligible charity and not for profit employees, this could mean up to:
- $15,900 for general living expenses
- $2,650 for entertainment expenses
If you leave this until late March, you may not have enough time to use it effectively. Reviewing your balance early gives you options.
If you are unsure how your limit works, you can also refer to the ATO's explanation of Fringe Benefits Tax on their website for further guidance.
2. Submit All Outstanding Receipt Claims
Unclaimed receipts are one of the biggest causes of lost savings.
Think back to:
- Dining out over summer
- Family celebrations
- Catering for events
- Holiday accommodation
- Everyday living expenses already paid
If you have paid out of pocket for eligible expenses, you may be able to claim reimbursements through your salary packaging arrangement.
To ensure processing before 31 March:
- Submit receipt claims by 20 March
- Include the restaurant or venue name
- Ensure the total amount is shown
- Confirm the date of purchase is visible
Claims submitted after this date may still be accepted, but processing for the current FBT year cannot be guaranteed.
3. Spend Any Remaining Funds on Your Packaging Card
If you use a salary packaging card such as a Beyond Bank card, timing is critical.
Any excess funds must typically be spent by 3pm on 31 March.
After that, the FBT year closes. Your cap resets. And unused amounts may be returned via payroll as post tax income, subject to tax and GST.
In practical terms, that reduces the benefit you would have received.
If you still have funds available, consider:
- Purchasing a supermarket gift card
- Pre-paying for an upcoming event
- Booking eligible accommodation
- Paying for approved entertainment expenses
The key is to act before the deadline.
4. Use Your Cap Strategically for Upcoming Expenses
The FBT year end is not just about looking backwards. It is also about planning ahead.
Have an upcoming holiday?
Hosting a celebration?
Planning a catered lunch?
Eligible entertainment expenses such as venue hire, catering and restaurant meals may be packaged if you meet the criteria.
If you know these costs are coming, using your remaining cap now can reduce the amount of tax you pay overall.
Instead of paying entirely from your take home pay, salary packaging allows approved expenses to be processed pre-tax, increasing your net benefit.
This is where forward planning makes a real difference.
5. Do Nothing If You Have Already Reached Your Threshold
Not everyone needs to take action.
If you have already reached your annual limit, there is nothing further required. Your cap will simply reset on 1 April and you can begin packaging again for the new FBT year.
That said, this is also a good time to review:
- Your current packaging elections
- Whether you are maximising both general and entertainment caps
- Whether a novated lease could complement your current benefits
Many employees use salary packaging for everyday expenses but do not realise that a novated lease can also form part of a broader tax effective strategy.
You can learn more about how this works on our Novated Leasing page or explore our Salary Packaging guide for a full overview.
What Happens at the End of the FBT Year?
To summarise:
- The FBT year runs from 1 April to 31 March
- Your salary packaging budget resets each new FBT year
- Unused funds do not carry over
- Some unused amounts may be returned via payroll as post tax income
- If you have reached your yearly threshold, no action is required
This reset is automatic. But whether you maximise your savings is entirely up to you.
Ready to Review Your Benefits?
If you are unsure how much you have left, or want to understand your options before the FBT year end, our team is here to help.
Get in touch for a quick review, or log into your account today and check your remaining balance.
The FBT year resets on 1 April.
Make sure you do not leave savings behind.