The end of the Fringe Benefit Tax year and why March 31 is important
Ah, 31 March — the finishing line of the Fringe Benefits Tax (FBT) year! It’s the last day for spending – and a final frantic 24 hours of claims processing for Maxxia!
It’s the most important day of the year in a lot of ways, and for many, it can also be the most stressful. Let’s take a closer look at why this time of year matters so much for your salary packaging benefits – and what the various scenarios might mean for you.
Each FBT year exists in its own ‘bubble’, running from April 1 to March 31. To receive your full entitlement, you need to spend up your full cap within that period. Once the clock ticks over from 31 March to 1 April, a new cap applies, and any unused funds from the previous FBT year will form part of the new FBT year’s cap.
Picture this: You have $2,000 to spend, but only three days to do so. Sounds easy right? You may be surprised how challenging this can prove to be. That’s exactly what can happen at the end of the FBT year, when a higher balance has been accumulated and needs to be claimed or spent before 31 March 2026
What is a ‘rollover’?
A rollover is when a benefit balance is not spent or claimed by 31 March and is allowed to ‘rollover’.
Contrary to common misunderstanding, you do not lose this money; it stays in the benefit it was initially allocated to. However, with the new FBT year now underway, any funds still in your account will now count towards the current year, not the previous one.
But weren’t the funds contributed from my pay last FBT year?
Your cap limit is not affected when Maxxia receives contributions from your payroll; your cap is used only when we pay funds to you or to your Maxxia Wallet Mastercard.
Example:
Let’s say you salary package the health cap of $9,010, and a balance of $1,000 rolls over from 31 March to 1 April.
When your new limit of $9,010 is allocated to you on 1 April, the $1,000 will automatically become part of this new cap.
Can it be fixed?
If you do end up with a rollover you may be able to claim the funds using a benefit above the cap (such as work-related expenses or super). Talk to your Maxxia Customer Care consultant for more information.
This is why avoiding a large rollover is essential – and why 31 March is such a key date. It is easy to avoid this scenario; have a plan on spending or claiming your funds, check your balance with the My Maxxia App and online portal. This will help ensure a smooth end of FBT year.
Looking to learn more? Be sure to follow Maxxia on Facebook to stay up to date with the latest article content to help you do more with your money.
Contacting Maxxia during the EOFBTY
While we always aim to do our absolute best, the EOFBTY can mean extended call-wait times. We recommend the below options for keeping in touch with us during this time.
- Check out more info at maxxia.com.au/fbt-year-end
- View your account anytime via My Maxxia
- Chat with us on LiveChat
- Follow us on Facebook and Instagram to stay up to date with the latest information.
Things you need to know: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax and financial advice. Conditions and fees apply and you should confirm they are acceptable before you accept any arrangements with Maxxia, along with credit assessment criteria for lease products. You acknowledge and agree that any reward you receive is not a salary, however you may need to declare any reward as income for tax purposes. The availability of benefits is subject to your employer’s approval. Maxxia may pay and/or receive commissions in connection with its services.
Maxxia Wallet Mastercard: This material is general information only. It does not take into account your particular/personal objectives, personal financial situation or personal financial circumstances. You should read the Product Disclosure Statement (PDS) for this product before making any decision on the new Card (Maxxia Wallet Mastercard). You can read the PDS here. The Target Market Determination for this product can be found here.
Maxxia Wallet Mastercard is a Prepaid Mastercard and is issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131 pursuant to license by Mastercard Asia/Pacific Pte. Ltd. Maxxia Pty Ltd (Maxxia) ABN 39 082 449 036 is an Authorised Representative of EML Payment Solutions Limited Australian Financial Services Authorised Representative number 000278683 and participates in the promotion and distribution of the Card. Consider if the card is right for you.
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