Fringe Benefits Tax Calculator
Calculate FBT liability on employee benefits including car fringe benefits, using the current 47% FBT rate.
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
Frequently Asked Questions
What is the FBT year?
Are electric vehicles exempt from FBT?
What is Fringe Benefits Tax?
Fringe Benefits Tax (FBT) is a tax employers pay on certain benefits provided to employees or their associates, such as company cars, entertainment, or low-interest loans. The FBT rate is 47%.
How this calculator works
The calculator applies the FBT gross-up formula. Type 1 benefits (where the employer can claim GST credits) use a higher gross-up rate of 2.0802. Type 2 benefits (no GST credits available) use 1.8868. The taxable value is grossed up and then taxed at the flat FBT rate of 47%. Employee contributions reduce the taxable value. The effective rate shows the real cost as a percentage of the benefit value, which is useful for comparing the total cost of salary packaging arrangements.
What Counts as a Fringe Benefit?
A fringe benefit is a non-cash benefit provided to an employee (or their associate) in connection with their employment. Common examples include:
- Company cars or car allowances for private use
- Car parking at or near the workplace (where commercial parking exceeds the threshold)
- Entertainment, meals, and recreation provided to employees
- Low-interest or interest-free loans
- Living-away-from-home allowances
- Private health insurance paid by the employer
- Reimbursement of personal expenses
Type 1 vs Type 2 Gross-Up Explained
The gross-up converts the taxable value of a benefit to its pre-tax equivalent — the amount of salary an employee would need to earn to purchase the benefit themselves. Type 1 benefits are those where the employer can claim a GST credit (e.g., a car purchase). These use the higher gross-up rate (2.0802) because the pre-tax equivalent must account for both income tax and GST. Type 2 benefits are those where no GST credit is available (e.g., residential rent, school fees). These use the lower gross-up rate (1.8868).
The FBT Year
The FBT year runs from 1 April to 31 March — different from the standard financial year (1 July to 30 June). FBT returns are due by 21 May following the end of the FBT year. Employers who self-prepare must lodge electronically. This offset timing means benefits provided in April-June straddle both the FBT year and the income tax year.
Exempt Benefits
- Minor benefits valued under $300 (the minor benefits exemption) — applies per benefit, not aggregated
- Eligible electric vehicles (EVs) — cars with zero tailpipe emissions below the luxury car tax threshold are fully exempt from FBT
- Work-related items: portable electronic devices, protective clothing, briefcases, tools of trade
- Employer contributions to complying super funds
- Certain fly-in fly-out (FIFO) and remote area benefits
FBT Key Rates and Thresholds (2025-26 FBT Year)
| FBT rate | 47% |
| Type 1 gross-up rate (GST credits available) | 2.0802 |
| Type 2 gross-up rate (no GST credits) | 1.8868 |
| FBT year | 1 April to 31 March |
| FBT return due date | 21 May |
| Minor benefits exemption threshold | Less than $300 per benefit |
| Car parking threshold | $10.40 per day (2025-26) |
| EV exemption | Zero-emission vehicles below luxury car tax limit — fully FBT exempt |
The EV FBT exemption applies to cars first held and used on or after 1 July 2022 with zero tailpipe emissions, provided the value is below the fuel-efficient luxury car tax threshold ($91,387 for 2025-26).
Worked Examples
Company car with taxable value of $15,000 (Type 1 — employer claims GST credit)
FBT payable: $14,665
- Taxable value of the car benefit: $15,000
- Apply Type 1 gross-up rate: $15,000 x 2.0802 = $31,203
- Apply FBT rate (47%): $31,203 x 0.47 = $14,665
- Effective FBT cost as % of benefit value: 97.8%
Same $15,000 car benefit (Type 2 — no GST credit available)
FBT payable: $13,300
- Taxable value of the car benefit: $15,000
- Apply Type 2 gross-up rate: $15,000 x 1.8868 = $28,302
- Apply FBT rate (47%): $28,302 x 0.47 = $13,302
- Effective FBT cost as % of benefit value: 88.7%
- Saving compared to Type 1: approximately $1,363
Official Sources
All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.
Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.