FBT Calculator
Calculate Fringe Benefits Tax for car benefits, expense payments, and LAFHA. Updated for 2025-26 FBT year.
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About Fringe Benefits Tax
- FBT year runs April 1 to March 31 - not the standard financial year (July-June).
- Type 1 gross-up (2.0802) applies when the employer can claim GST credits on the benefit.
- Type 2 gross-up (1.8868) applies when no GST credits are available.
- FBT rate is 47% (equal to the top marginal tax rate plus Medicare levy).
- Common exemptions: minor benefits under $300 per occasion, work-related items (laptop, tools, briefcase), car parking under the threshold, and exempt employer categories (charities, hospitals).
- The reportable fringe benefits amount appears on the employee's payment summary and can affect income-tested government benefits (HELP repayments, Medicare levy surcharge, etc.).
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How Fringe Benefits Tax works in Australia
Fringe Benefits Tax (FBT) is a tax paid by employers on certain benefits provided to employees or their associates. Unlike income tax, FBT is paid by the employer - not the employee. The FBT rate is 47%, which is equivalent to the top marginal income tax rate plus the Medicare levy.
The FBT year runs from 1 April to 31 March - different from the standard income tax year of 1 July to 30 June. FBT returns are due by 21 May each year (or 25 June if lodged by a tax agent).
Type 1 vs Type 2 gross-up
Type 1 benefits are those where the employer is entitled to a GST credit (gross-up rate 2.0802 for 2025-26). Type 2 benefits are those where no GST credit is available (gross-up rate 1.8868). The gross-up converts the taxable value to a pre-tax equivalent, so FBT effectively taxes the benefit at the same rate as salary.
Car fringe benefits - statutory method
The statutory method values a car fringe benefit at 20% of the car's cost price, multiplied by the number of days available divided by 365. Employee contributions from after-tax income reduce the taxable value. This method is simpler than the operating cost method but may result in higher FBT if the car has low private use.
Common FBT exemptions
- Minor benefits valued at less than $300 per occasion
- Work-related items: portable electronic devices, tools of trade, protective clothing, briefcases
- Car parking under the ATO's car parking threshold ($10.40/day for 2025-26)
- Exempt employers: public benevolent institutions, health promotion charities, some hospitals
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