The end of Fringe Benefits Tax year FAQs

What if I don’t reach the cap limit within this FBT year?

If you have unspent funds in your salary packaging account on 31 March 2026, they will carry over for you to use in the new FBT year starting 1 April 2026. However, your annual cap limit will remain the same and won’t roll over for the new FBT year.

If I reach my FBT exemption cap early, what happens to my ongoing contributions?

Unless you advise us otherwise, RemServ will continue deducting your allocated salary packaging contributions from your pre-tax pay. These funds will accumulate in your RemServ account for you to spend in the new FBT year. Please keep in mind that any accumulated funds will be counted towards your new cap limit for next FBT year when you claim or spend.

If you want to pause your contributions, you can email [email protected] to place a temporary hold on your payroll contributions for the remainder of this FBT year. They will then automatically recommence when the new FBT year starts on 1 April.

NOTE: Any changes to your account can take up to two pay cycles to come into effect.

What happens if I reach the FBT exemption cap early?

If your salary packaging account reaches your FBT exemption cap limit early, RemServ will notify you before the end of the FBT year with the available options you can consider taking to manage your account.

If you do reach your FBT exemption cap before 31 March, your ongoing payments for your capped benefits will be placed on hold. These payments will automatically resume on your first regular pay day in the new FBT year (from 1 April).

However, your salary packaging contributions will continue to be deducted from your pay and sent to your RemServ account for the remainder of the FBT year, unless you notify us otherwise. If you use these accumulated funds in the new FBT year (1 April 2026 – 31 March 2027), they will be counted towards your new exemption cap. Please remember the cap limit remains the same each year (for example, $15,900 for living expenses for eligible charity workers). Any unspent funds carried into the new FBT year will form part of the new cap limit when you claim or spend.

Please note that RemServ cannot make automatic catch-up payments for amounts missed while your regular payments are on hold, including home loan and rental expenses. During this time, please make alternative arrangements to manage your account and expenses until the new FBT year commences on 1 April.

If you reach the FBT cap, this won't affect payments to benefits which fall outside your FBT exemption limit, such as work-related expenses such as professional memberships, self-education/professional development and/or portable electronic devices.

Which expenses can I salary package on top of the cap limits?

Depending on your employer, there may be additional benefits you can salary package that don’t impact the salary packaging or Meal Entertainment caps.

These could include:

• Income protection insurance premiums
• Work related expenses such as phone, tablet or laptop computers
• Professional memberships
• Self-education/professional development expenses
• A novated lease and more!

It's worth finding out if there are other benefits you could salary package in case you're missing out on more potential savings.

Do I need to claim my Meal Entertainment and Venue Hire balance?

You can claim and/or spend up to a combined cap limit of $2,650 each FBT year for Meal Entertainment and Venue Hire. Both benefits fall under the one cap limit.

If you choose to package Venue Hire on its own, the $2,650 annual cap still applies.

Venue Hire allows you to claim holiday accommodation or venues hired out for events.

To ensure your Meal Entertainment and Venue Hire claims are processed within the 2026/27 Fringe Benefits Tax (FBT) year, RemServ must receive all claims by Wednesday 25 March 2026.

Is there anything I cannot buy with my Meal Entertainment funds?

Yes. Meal Entertainment funds cannot be used to purchase the following:

• Meals or drinks purchased on-site at your workplace
• Alcohol, unless it is consumed while dining out with friends or family
• Groceries
• Takeaway and home delivered meals such as Uber Eats

How can I spend my RemServ Wallet Mastercard balance?

Tuesday 31 March 2026 is the final date to spend funds on your RemServ Wallet Mastercard. To maximise your potential tax savings, make sure you use your balance before this date. Some vendors and financial institutions may take a few days to process transactions, so make sure you spend your balance before Tuesday 31 March 2026. RemServ is not responsible for any processing delays by vendors or financial institutions.

If you have any unspent funds on your RemServ Wallet Mastercard at midnight Tuesday 31 March 2026 (AEST), you will not lose this money.

Your balance will remain on the card for you to spend in the new FBT year, which starts on Wednesday 1 April 2026. However, these leftover funds will count towards your new cap, which means you may lose the potential tax savings on the cap limit you have not used from the previous FBT year.

Here are some ideas to help reduce the balance on your card:

• Use your RemServ Wallet Mastercard as often as possible throughout January, February and March before the end of FBT year.
• You can use your RemServ Wallet Mastercard to buy a gift card which can then be used at a later date, while still reducing your balance. Note: this applies to Living Expenses only.
• Why not pre-pay some bills? This is another simple way to reduce the balance on your card as much as possible before 31 March. Note: this applies to Living Expenses only.

How do I register and login to My RemServ for the first time?

1. Search for My RemServ in your smartphone’s app store and download the app. Prefer to register online? Head to my.remserv.com.au.
2. Start your registration by tapping ‘I don’t have a My RemServ login yet’, then select ‘Get Started’.
3. Follow the prompts to confirm your email address and set up a secure password.
4. Complete setup in the app: you’ll be guided to verify your phone number and set up a 4-digit PIN. You also have the option to enable Face ID or fingerprint login.

How do I check and track my benefits?

Regularly tracking your benefits allows you to monitor and make the most of your salary packaging.

Accessing your benefit details

From your dashboard, locate the benefit you’d like to track under the ‘My Salary Packaging benefits’ section. Select the benefit to open the benefit tracking screen where you can access your spend overview, transactions and more.

Tracking your benefits

On the ‘Benefit Details’ screen, you can view a graph showing monthly tracking against your budget as well as your available balance for claims. You can also access a description of the benefits and any related transactions.

How do I add a benefit?

On the dashboard, select ‘Salary Packaging Cap’ to open your ‘Salary Packaging Cap Tracker’, then:

• Click 'Add Benefit'
• Select from the available options and follow the prompts
• To add more than one new benefit, repeat as needed
• Enter the desired fortnightly amount for your benefit(s)
• Click 'Calculate your fees'
• Follow the prompts to finalise, ensuring you read the terms and conditions.

Adding the Meal Entertainment / Venue Hire benefit

Select ‘Meal Entertainment Cap’ in the dashboard to open your ‘Meal Entertainment Cap Tracker’, then:

• Click 'Add Benefit'
• Select the ‘Meal Entertainment cap’ tab
• Follow the prompts to complete the remaining steps as provided above.

How do I amend my contributions?

On the dashboard, select ‘Salary Packaging Cap’ to open your ‘Salary Packaging Cap Tracker’, then:

• Click 'Manage'
• Review your cap utilisation and the suggested allocation(s) based on remaining pay cycles. You can also elect to remove benefits at this time.
• To add more than one new benefit, repeat as needed
• Enter the desired fortnightly amount for your benefit(s)
• Click 'Calculate your fees'
• Follow the prompts to finalise, ensuring you read the terms and conditions.

Updating the Meal Entertainment / Venue Hire benefit

Select ‘Meal Entertainment Cap’ in the dashboard to open your ‘Meal Entertainment Cap Tracker’, then:

• Click 'Manage'
• Review and update your cap utilisation
• Follow the prompts to complete the remaining steps as provided above.

How do I make and check claims?

Submitting claims allows you to be reimbursed for funds spent on expenses for which you have active benefits (for example, electricity or phone bills).

Starting and submitting a new claim

Scroll to the bottom of the dashboard and tap the ‘New Claim’ button. It’s a large blue button with a white plus in the centre.

Choosing reimbursement or direct to vendor

You will have the option of being reimbursed to your account if you have already paid for the expense, or requesting for us to relay the funds to the vendor on your behalf.

Providing details

You will be asked to choose the active benefit your claim is for before providing expense evidence – typically a tax invoice although other substantiation may be required.

Confirming or updating bank details

By default, your nominated bank account details will be pre-filled. You will be able to change your bank details; however, updates will apply to ALL pending and future claims.

Viewing your claims history

Once the claim is submitted, you will be able to track it through your transaction history. To access your history, tap the ‘Transactions’ button just to the right of the ‘New claim’ button. Then, select the ‘Claims status’ option at the top of the screen.

How do I check and update my bank account?

Updating your nominated bank account changes where reimbursements, claims, and all other salary packaging funds are sent.

Accessing your bank account details

Go to your profile settings, located at the bottom right of your dashboard. Click the ‘Settings’ link – accompanied by a gear icon – and then select ‘My details’.

Updating/adding a new bank account

1. Select ‘Bank account’ and then follow the prompts to enter your new bank account details for salary packaging or novated leasing
2. Enter the required details: Account name, BSB and Account number
3. Double-check all entered information for accuracy.

Verifying your identity

You will be redirected to your browser to receive a one-time passcode (OTP) for verification, either via email or SMS.

Note: Ensure you’re certain about changing your bank details as this update will affect ALL future payments and pending claims for salary packaging or novated leasing.

What is the difference between balance and cap, and why does it matter?

Balance

Your balance is the amount available in your RemServ salary packaging account. This is an actual dollar figure made up of funds received from your payroll.

Cap

Your FBT exemption cap is the maximum amount you’re allowed to salary package each FBT year ($9,010 for eligible health workers and $15,900 for eligible charity staff) towards living expenses benefits, such as rent, mortgage or the RemServ Wallet Mastercard.

Depending on your employer, if you are an eligible health and charity employee, you could also be eligible to package an additional $2,650 for Meal Entertainment expenses each FBT year.

Throughout the FBT year, your cap figure(s) will update to reflect the remaining amount of cap you can claim for the FBT year.

Why it matters

At the end of the FBT year, any funds available (your balance) in your salary packaging account will remain there for you to access in the new FBT year. However, any cap limit remaining will not rollover into the new FBT year, which means you may lose the potential tax savings on the cap limit you have not used from the previous FBT year. When the new FBT year starts, your maximum cap limit will reset to $9,010 for eligible health workers and $15,900 for eligible charity staff, regardless of whether you claimed the maximum amount in the previous year.

How do I contact RemServ during the EOFBTY?

• View your account via My RemServ (app or online)
• Chat with us on LiveChat
• Email us at [email protected]
• Like us on Facebook

What is the end of FBT year, and how does it affect me?

Australian Tax Office (ATO) legislation requires a certain amount of Fringe Benefits Tax (FBT) to be paid on your novated lease.

The amount of FBT is based on the taxable value associated with your vehicle.

Depending on the type of car and the employer you work for, you may have options for offsetting your FBT, if required. These options include the Employee Contribution Method (ECM), where a post-tax contribution, equivalent to the taxable value of your vehicle, is deducted from your pay within the current FBT year, which is from 1 April to 31 March.

Most customers will not be impacted, and there is likely nothing they need to do prior to the end of the FBT year. If you are required to take action, we will be in touch.

Some customers – especially those who have recently begun a novated lease – may need to readjust their post-tax contributions to meet ATO requirements and reduce any FBT amount payable.

Why do my contributions differ from my proposal?

One of the most common questions we get at this time of year is, “Why does my contribution amount differ from my original proposal?”

The answer is that each time we provide you with an estimate of your contributions, we use the remaining pay cycles in the FBT year (ending 31 March) to calculate the numbers. As we get closer to March you may have fewer pay cycles than estimated. This is why there may be a difference in the estimate we calculated a month ago and the contribution amount you end up starting with.

We have therefore temporarily adjusted your contributions based on how many pay cycles are left and on the pro-rata FBT requirement.

The reason for this adjustment is to minimise any shortfall and potentially offset the amount of FBT you may need to pay. Your contributions will automatically return to the proposed amount from 1 April.

I'm starting a novated lease late in the FBT year – what do I need to do?

We will likely be in touch to discuss post-tax management of your lease, including whether you need to make a deposit directly to us if there are not enough pay runs to cover the required post-tax amount this FBT year.

Collecting your annual amount of Employee Contribution Method (ECM or post-tax)

Under the salary packaging arrangement, if you the employee choose ECM to pay for your novated lease, then post-tax (employee) contributions are made to reduce the taxable value of the novated lease vehicle.

This offsets the amount of FBT you may need to pay, and you can use these post-tax funds for your novated lease vehicle expenses throughout the year. The funds are simply added to your balance for:

• Monthly lease payments
• Maintenance
• Running costs
• Fuel
• Claims for any eligible expenses such as registration and insurances

ECM Shortfall

In some instances, too much post-tax (ECM excess) or not enough post-tax (ECM shortfall) is collected. An ECM shortfall is not a penalty or fine. It can happen for a number of reasons, such as:

• Missed income (for example, when you take leave without pay and RemServ does not receive contributions during that time). Please ensure RemServ is notified of any changes to your employment that may affect the funds received for your novated lease.
• The lease terminates before its natural end date and there are no pay cycles remaining to collect more post-tax.
• A new novated lease is set up late in the FBT year and there are no more pay cycles remaining to collect the required post-tax.

If an ECM shortfall is not resolved before the end of the FBT year, it becomes an FBT liability for your employer. However, it is the employee’s responsibility to pay the FBT liability to the employer to be remitted to the ATO.

How can I resolve an ECM shortfall?

If RemServ contacts you regarding an ECM shortfall, several options are available:

1. Make additional post-tax contributions for the remaining pays in the FBT year to offset your ECM shortfall.
2. Pay the remaining post-tax amount directly to RemServ. Payments must be received on or before 31 March. If the post-tax is received after, it will be counted towards the new FBT year.
3. Claim Unreimbursed Running Costs. These are costs incurred during the lease but have not already been claimed or reimbursed pre-tax. The claim amount will reduce the ECM shortfall. Note: any claims used for this purpose cannot be claimed again in the future.
4. You may be eligible to claim Days Unavailable if your vehicle was away for non-routine service and repairs, or if it was left (with keys) with your employer for three (3) days or more (excluding drop-off and pick up dates). Substantiation may be either in the form of a tax invoice from the mechanic showing the date the car was dropped off and picked up, or a letter from your employer confirming that they had the vehicle on site and were in possession of the keys.

If you work in the Health or Charity sectors, there may be additional options available to you. It is essential that you contact us prior to 31 March to discuss your options and reduce the possibility of any FBT liability.

Am I impacted by a potential ECM shortfall if I have a battery electric (BEV) or plug-in hybrid (PHEV) vehicle on novated lease that is eligible for the FBT exemption?

You will not be required to pay post-tax dollars to alleviate an ECM shortfall provided:

• The value of the car falls under the Luxury Car Tax (LCT) threshold of $91,387
• The PHEV on novated lease was in use and under a financially binding commitment prior to 1 April 2025 (any material changes to the agreement after this date, such as refinancing or extending the lease, will make the render the FBT exemption invalid, and therefore a post-tax component will need to be paid via ECM).

What happens if there is an FBT liability?

If you were unable to resolve your ECM shortfall prior to the end of the FBT year, you will be required to cover the FBT liability.

If this occurs, there are a number of options available to you:

1. Depending on your account balance, we may be able to use some of the funds in your vehicle account with RemServ to pay the outstanding amount.
2. Depending on your employer’s requirements, you may be able to pay the liability over a number of pay cycles with pre-tax dollars.
3. You can pay the FBT liability directly to RemServ using post-tax funds, who will then send this to your employer on your behalf.

Will my employer be liable for FBT?

If we do not rectify the shortfall of ECM, your employer will have to pay the FBT owing to the ATO, as the amount is now an FBT liability. In most cases, the employee will pay the employer, who then pays the ATO. Under your novated leasing arrangement, RemServ will collect any FBT liability incurred on behalf of your employer. If you have an FBT liability owing, we will contact you to advise your options and organise payment. Whilst an ECM shortfall can be offset, a liability must be paid.

I have an EV, what are my claiming options for charging?

You have two options for claiming the cost of charging for eligible BEVs or PHEVs on novated lease: the Shortcut Method (for BEVs only); and the Invoice Method.

The Shortcut Method allows you to claim 4.2 cents per kilometre, when you primarily charge your BEV at home and do not have a separate meter for charging.

The Invoice Method allows you to claim costs from public charging stations as well as metered home-charging.

Click here for more detailed information on these claiming methods: Claiming EV Charging via Novated Lease: You Have Choice!

My lease is ceasing soon, is there anything I need to do?

Whether your lease is scheduled to cease or you need to end it early, please let us know as soon as possible (two weeks in advance if you can).

Make sure you submit your running cost claims as soon as possible – and if your lease ends in March, please submit claims by 25 March 2026.