FBT car calculator

Car FBT Calculator

Calculate car fringe benefits tax using the ATO statutory formula (20%) or operating cost method. Includes deemed depreciation (25% DV), deemed interest (8.77%), EV exemption check, 2025-26 & 2026-27 FBT years.

Statutory & operating cost EV exemption check

01 —INPUTS

FBT Year

FBT year runs 1 April to 31 March

Calculation Method

Flat 20% of base value — no logbook required

Base Value of Car (GST-inclusive)

Purchase price including GST and dealer delivery, excluding rego/stamp duty

Battery electric or fuel-cell vehicle (BEV/FCEV)

Days Available for Private Use

365 = full FBT year; reduce if car was only available part of the year

Employee Contribution (post-tax)

Post-tax contributions reduce the taxable value dollar-for-dollar

02 —RESULTS

FBT Payable (Statutory)$9,776.94

03 —BREAKDOWN

Calculation

Taxable value$10,000.00

Gross-up rate (Type 1)× 2.0802

Grossed-up value$20,802.00

FBT rate47%

Statutory Formula Breakdown

Base value$50,000.00

Statutory rate20%

Days available / days in FBT year365 / 365

Method choice: Employers elect the statutory or operating cost method each FBT year on a per-car basis. Statutory is simpler; operating cost typically wins when business use exceeds ~40-50%.

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The two methods compared

	Statutory Formula (s 9)	Operating Cost (s 10)
Input needed	Base value + days available	Actual costs + 12-week logbook
Key rate	Flat 20% of base value	Business-use % from logbook
Deemed depreciation	N/A — embedded in the 20%	25% diminishing value on WDV
Deemed interest	N/A	ATO benchmark rate × WDV
Best for	Mostly-private cars, no logbook	High business-use cars (40%+)
Election	Default if no election	Elected per car per FBT year

Statutory formula walkthrough

Step 1 — Taxable value: Base value × 20% × (days available ÷ 365) − employee contribution

Step 2 — Grossed-up: Taxable value × 2.0802 (Type 1) or 1.8868 (Type 2)

Step 3 — FBT payable: Grossed-up value × 47%

Example: $50,000 car, full year, no contribution, Type 1 → $50,000 × 20% = $10,000 → $10,000 × 2.0802 = $20,802 → × 47% = $9,776.94 FBT

The base value is the GST-inclusive purchase price including dealer delivery, excluding registration and stamp duty. After 4 full FBT years of ownership it drops by one-third (FBTAA s 9(2)(a)), though that step is not auto-applied in this calculator — use the operating cost method or adjust the base value manually if the car is past its fourth birthday in service.

Operating cost walkthrough

Step 1 — Total operating costs: Actual (fuel + rego + insurance + maintenance) + deemed depreciation (25% × WDV) + deemed interest (ATO benchmark × WDV)

Step 2 — Taxable value: Total × (1 − business-use %) − employee contribution

Step 3 — Grossed-up and FBT: Same as statutory — × 2.0802 × 47%

Example: $50,000 car, 60% business, $6,500 actual costs, year 1, 2025-26:

→ Actual $6,500 + deemed dep $12,500 + deemed int $4,385 = $23,385 total

→ Private portion (40%) = $9,354

→ Grossed-up $9,354 × 2.0802 = $19,461

→ FBT = $19,461 × 47% = $9,147

The "written-down value" for deemed depreciation and interest decays 25% each FBT year the car is held. A 4-year-old car's WDV is about 32% of cost, so deemed components shrink materially — this is why operating cost often beats statutory on older fleet cars even at moderate business use.

Electric vehicle exemption

→ BEV & FCEV eligibility: First held and used on or after 1 July 2022, priced at or under the fuel-efficient LCT threshold ($91,387 for 2025-26), are FBT-exempt under the Electric Car Discount.

→ PHEV cutoff: Plug-in hybrids lost eligibility on 1 April 2025 unless grandfathered by a pre-existing binding commitment.

→ RFBA still applies: Even with $0 FBT payable, the employer must report the notional grossed-up value as a Reportable Fringe Benefits Amount on the income statement. That figure affects Medicare Levy Surcharge, HELP repayments, Division 293 super tax, FTB, CCS, and the Private Health Rebate.

For the deeper novated-lease comparison (including running costs and take-home-pay impact), use the EV Novated Lease Calculator.

Key FBT dates

Date	Event
1 April	FBT year begins
31 March	FBT year ends
21 May	FBT return due (self-lodgers)
25 June	FBT return due (tax agent)

FAQ

What is the statutory formula method for car FBT?

Taxable value = Base value × 20% × (days available for private use ÷ days in FBT year) − employee contribution. The base value is the GST-inclusive cost of the car including dealer delivery. The 20% rate has been flat since 1 April 2014 (previously a sliding scale by km). Grossed-up at 2.0802 for Type 1, then FBT 47%.

What is the operating cost method for car FBT?

Taxable value = Total operating costs × (1 − business-use %) − employee contribution. Operating costs include actual fuel, maintenance, insurance and registration, plus deemed depreciation (25% diminishing value on written-down cost) and deemed interest (ATO's FBT benchmark rate, 8.77% for 2025-26). Business-use % requires a valid 12-week logbook every 5 years.

Which method is better — statutory or operating cost?

Operating cost usually wins when business use is high (rule of thumb: above 40-50%). Statutory wins on nearly-private cars, older cars past their depreciation curve, or when no logbook is available. Employers can elect per car per year, so compare both before lodging the FBT return.

How is deemed depreciation calculated for FBT?

FBTAA s 11 applies 25% diminishing value on the car's written-down value at the start of the FBT year. For a brand-new $50,000 car, deemed depreciation in the first year is $12,500. By year 4 it's around $5,273 because the WDV has dropped to $21,094. This is statute-fixed for cars held on or after 10 May 2006.

What is the FBT benchmark interest rate?

The ATO publishes the FBT benchmark interest rate annually via a Taxation Determination (TD). For 2025-26 it's 8.77% (TD 2025/3), unchanged from 2024-25 (TD 2024/5). It applies to the deemed interest component of the operating cost method on the written-down value of the car.

Are electric vehicles exempt from car FBT?

Battery electric and fuel-cell vehicles first held and used on or after 1 July 2022, priced at or below the fuel-efficient luxury car tax threshold ($91,387 for 2025-26), are FBT-exempt under the Electric Car Discount. Plug-in hybrids lost eligibility on 1 April 2025 unless grandfathered by a pre-existing binding commitment. Even when exempt, the employer must report the grossed-up notional value as a Reportable Fringe Benefits Amount (RFBA).

Does the FBT calculation change if the car was only available for part of the year?

Yes. The statutory formula divides by days in the FBT year, so 183 days of private-use availability halves the result. Under the operating cost method, you only count costs incurred during the availability period. A 'day of availability' means the car was available for private use, even if not actually driven — garaged at the employee's home typically counts.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2025-26

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.

Car FBT Calculator

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Tax Accuracy & Sources

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