Calculate Fringe Benefits Tax payable on employee benefits. Keep taxable value separate from actual employer cost, and check whether the benefit is included in reportable fringe benefits.
Runs from 1 April to 31 March
The taxable value of this benefit provided to each employee
Optional. Taxable value and the employer’s actual cost are not always the same.
Type 1 if your business can claim a GST credit on the benefit; Type 2 otherwise. Applies the 2.0802 gross-up factor.
Some FBT-liable benefits are excluded from RFBA, including certain car parking and non-salary-packaged meal entertainment benefits
How many employees receive this benefit
Other reportable taxable values already provided to the same employee this FBT year
FBT Payable (per employee)$4,888.47
FBT Calculation
Taxable value of benefit$5,000.00
Actual cost per employee$5,000.00
Gross-up rate (Type 1)x 2.0802
Grossed-up value$10,401.00
FBT rate47%
Employer Cost Summary
Total cost to employer$9,888.47
Cost per employee (actual cost + FBT)$9,888.47
Reporting
Total taxable value for reporting test$5,000.00
Reportable fringe benefits amount$9,434.00
Reportable: The total taxable value is more than $2,000. The RFBA is $9,434.00, calculated with the Type 2 gross-up rate (1.8868) regardless of the benefit type. It may affect income-tested benefits and obligations.
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).
FBT calculation formula
Step 1: Grossed-up value = Taxable value × Gross-up rate
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.
Common FBT exemptions
→Minor benefits: Under $300 is only the first test; all statutory criteria must be checked
→Work-related items: Portable electronic devices, tools of trade, protective clothing, briefcases (one per FBT year)
→Otherwise deductible rule: Benefits the employee could have claimed as a tax deduction
→Electric vehicles: Eligible zero or low-emissions cars first held and used from 1 July 2022 where LCT has never been payable
→Salary sacrifice into super: Not a fringe benefit — taxed at 15%, not subject to FBT
Reportable fringe benefits
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.
→Medicare Levy Surcharge liability
→HELP/HECS-HELP repayment obligations
→Family Tax Benefit entitlements
→Child support assessments
→Government co-contribution eligibility
FAQ
What is Fringe Benefits Tax (FBT)?
Fringe Benefits Tax (FBT) is a tax paid by employers on non-cash benefits provided to employees, their associates, or former employees. It is separate from income tax and is calculated on the grossed-up taxable value of the benefits at a flat rate of 47%.
What is the current FBT rate?
The FBT rate for the 2026-27 FBT year (1 April 2026 to 31 March 2027) is 47%.
What is the difference between Type 1 and Type 2 benefits?
Type 1 applies to benefits for which the employer is entitled to a GST credit and uses the 2.0802 gross-up rate. Type 2 applies where there is no GST credit entitlement and uses 1.8868. Classification follows the GST treatment of the particular benefit rather than its everyday label.
What is the FBT gross-up rate?
The gross-up rate converts the taxable value of a fringe benefit to a grossed-up amount that reflects the pre-tax salary equivalent. For 2026-27, the Type 1 gross-up rate is 2.0802 and the Type 2 gross-up rate is 1.8868. FBT is then calculated at 47% on this grossed-up amount.
What is the minor benefit exemption?
A taxable value below $300 is only the first test for the minor benefit exemption. You must also consider frequency, regularity, total associated benefits, the circumstances of provision, and categories excluded by law. A benefit is not automatically exempt just because it costs less than $300.
When is the FBT return due?
The FBT year runs from 1 April to 31 March. The return and payment due date is generally 21 May. Eligible returns lodged electronically by a tax agent are generally due 25 June; paper-agent lodgments remain due 21 May.
Tax Accuracy & Sources
Reviewed: 26 September 2026 · Tax year: 2026-27
This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.
