Fringe Benefits Tax (FBT) Calculator
Car fringe benefits (statutory formula s 9 or operating cost s 10) and other fringe benefits. Gross-up Type 1 (2.0802) where GST credits are available, Type 2 (1.8868) where they aren't. FBT rate 47% for the FBT year ending 31 March 2026.
Inputs
Result
- Taxable value (pre gross-up)
- $10,000.00
- Gross-up factor (Type 1)
- 2.0802
- Grossed-up taxable value
- $20,802.00
- FBT payable (47%)
- $9,776.94
- Effective annual cost to employer
- $19,776.94
Car method comparison
Statutory
Operating
Taxable value
$10,000.00
$4,800.00
FBT payable
$9,776.94
$4,692.93
Related
Statute
FBTAA 1986 ss 5–9, Div 2 (s 9 statutory formula, s 10 operating cost). Type 1 gross-up factor 2.0802 (GST credits available), Type 2 factor 1.8868 (no GST credits). FBT rate 47% (FBT year ending 31 March 2026).Frequently asked questions
When is Type 1 vs Type 2 gross-up used?+
Type 1 (factor 2.0802) applies when the employer was entitled to a GST input tax credit on the benefit. Type 2 (factor 1.8868) applies when no GST credit was available (e.g. GST-free or input-taxed supplies, or employer not registered for GST). FBTAA s 5B(1B)–(1C).
Which car method usually wins?+
Statutory formula is simple (20% flat × base value × days). Operating cost is paperwork-heavy but typically lower when business-use exceeds 50%. The choice is made annually per car.
Do employee contributions reduce FBT?+
Yes — after-tax contributions reduce the taxable value dollar-for-dollar before gross-up. Common in novated lease ECM arrangements to bring FBT to nil.
Last reviewed:
Not tax advice. Educational estimate under FBTAA 1986. Does not model the reportable fringe benefits amount (RFBA), the otherwise deductible rule, the employee contribution method (ECM) tax mechanics in full, or aggregate employer FBT thresholds. Verify with a registered tax agent.