FBT Calculator (Fringe Benefits Tax)

FBT is a tax paid by employers on non-cash benefits provided to employees. Unlike income tax, FBT is paid by the employer, not the employee. The tax is calculated on the "grossed-up" value of the benefit at a flat rate of 47%. The FBT year runs from 1 April to 31 March, which is different from the income tax year (1 July to 30 June).

The most common car fringe benefit is a company or novated-leased car made available for an employee's private use. Two methods are allowed — the statutory formula (flat 20% of base value) and the operating cost method (business-use % × actual + deemed costs). Employers elect per car, per FBT year, and typically run both to pick the lower liability.

Battery electric and fuel-cell vehicles first held and used on or after 1 July 2022 may qualify for the electric-car discount when luxury car tax has never been payable. Exempt electric-car benefits can still produce a reportable fringe benefits amount.

For method-specific numbers, use the Car FBT Calculator for side-by-side statutory vs operating-cost output with deemed depreciation, deemed interest, business-use % and the EV exemption check built in.

If the total taxable value of reportable fringe benefits provided to an individual employee is more than $2,000, an RFBA must be reported on their income statement. The RFBA is then calculated using the lower Type 2 gross-up rate, even when the employer used the Type 1 rate to calculate FBT. It does not directly increase income tax, but it can affect:

Not every FBT-liable benefit is included in that test. ATO-listed exclusions include certain car parking benefits, non-salary-packaged meal entertainment, and non-salary-packaged entertainment facility leasing expenses. The calculator lets you exclude the current benefit while still counting other reportable benefits.