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Fringe Benefits Tax Calculator Australia โ€” FBT Year 2025-26

Calculate FBT on company cars, entertainment, housing, and other fringe benefits. Compare EV vs petrol car FBT savings. Type 1 and Type 2 gross-up rates applied. FBT year ending 31 March 2026. Rate: 47%.

Select the type of fringe benefit provided
$
The taxable value after any reductions or exemptions
Type 1 (GST credit) uses 2.0802 gross-up. Type 2 (no GST) uses 1.8868.
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How to Use This Calculator

FBT Calculator tab

Select the benefit type (Car, Entertainment, Housing, or Other), enter the taxable value of the benefit, and indicate whether a GST credit is available (Type 1) or not (Type 2). The calculator shows the grossed-up value, FBT payable, effective cost, pre-tax salary equivalent, and whether the benefit is reportable.

Car Benefit tab

Enter the car cost price (GST-inclusive purchase price), days available for private use during the FBT year (1 April 2025 to 31 March 2026), and any employee contribution from after-tax income. The calculator uses the statutory formula method with the flat 20% rate to determine the taxable value and FBT payable.

EV vs Petrol tab

Enter the car value and select whether it is a battery electric vehicle (BEV), plug-in hybrid (PHEV), or petrol/diesel. The calculator shows the FBT saving from the EV exemption and checks eligibility against the $91,387 luxury car tax threshold for fuel-efficient vehicles.

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All inputs are encoded in the URL. Click Share to send your FBT calculation to your accountant or payroll team.

The Formula

FBT General Formula:
Grossed-up Value = Taxable Value × Gross-up Rate
FBT Payable = Grossed-up Value × 47%

Gross-up Rates:
Type 1 (GST credit available): 2.0802
Type 2 (no GST credit): 1.8868

Car Statutory Formula:
Taxable Value = Car Cost × 20% × (Days Available ÷ 365) − Employee Contribution
Grossed-up Value = Taxable Value × 2.0802 (Type 1)
FBT = Grossed-up Value × 47%

EV Exemption:
FBT = $0 if the vehicle is a battery electric or hydrogen fuel cell vehicle AND the value is ≤ $91,387 (LCT threshold for fuel-efficient vehicles).
PHEVs are NOT exempt from 1 April 2025.

Worked Example

Company car $45,000 — full year, Type 1, no employee contribution

Step 1: Statutory fraction value

Car cost price$45,000
Statutory rate20%
Days available365 / 365 = 1.0
Statutory value$9,000

Step 2: Gross-up and FBT

Taxable value (no employee contribution)$9,000
Type 1 gross-up (2.0802)$18,722
FBT payable (47%)$8,799

Step 3: EV comparison

If the same car was a BEV (under $91,387)FBT = $0
Annual FBT saving with EV$8,799

Key insight: A $45,000 petrol company car costs the employer $8,799 in FBT per year. The same car as a battery electric vehicle pays $0 FBT, saving $8,799 annually. Over a typical 3-year novated lease, that is $26,397 in FBT savings.

FBT Rates and Thresholds (FBT Year Ending 31 March 2026)

FBT rates and gross-up factors
Item Value
FBT rate 47%
Type 1 gross-up rate (GST credit) 2.0802
Type 2 gross-up rate (no GST credit) 1.8868
Car statutory fraction 20% (flat)
Minor benefit exemption < $300 (infrequent/irregular)
Reportable threshold $2,000 grossed-up
EV FBT exemption thresholds
Item Value
LCT threshold (fuel-efficient) $91,387
Eligible vehicles BEV, Hydrogen fuel cell
PHEV eligibility NOT exempt from 1 Apr 2025
Review status Report due mid-2027

PHEVs with a pre-existing commitment before 1 April 2025 may still be exempt. Consult your tax adviser.

Not-for-profit FBT caps
Organisation Type FBT-free Cap
Public hospitals, public ambulance services, PBIs $17,000
Other NFP employers (charities, etc.) $30,000

These caps apply to the grossed-up taxable value of benefits per employee per FBT year. Benefits within the cap are FBT-free to the employer.

FBT year vs income tax year
Period Start End
FBT year 1 April 2025 31 March 2026
Income tax year (FY 2025-26) 1 July 2025 30 June 2026

The FBT year and income tax year are different. FBT returns are due 21 May (or 25 June if lodged by a tax agent). Employers pay FBT quarterly or annually.

FAQ

FBT is paid by the employer, not the employee. The rate is set at 47% to equal the top marginal tax rate (45%) plus the 2% Medicare levy. This ensures that providing a fringe benefit is not more tax-effective than paying cash salary at the highest marginal rate. In practice, if the employee's marginal rate is lower than 47%, the overall tax outcome may be different. The employer claims the FBT paid as a tax deduction.
Type 1 (gross-up rate 2.0802) applies when the employer can claim a GST credit on the benefit. This is the more common case for most goods and services (cars, electronics, entertainment at GST-registered venues). Type 2 (gross-up rate 1.8868) applies when no GST credit is available, such as for residential rent, financial supplies, or GST-free items. The higher Type 1 rate reflects the fact that the employer has already received a GST credit, so the grossed-up value needs to be higher to put the employer in an equivalent position.
No. From 1 April 2025, plug-in hybrid electric vehicles (PHEVs) are no longer eligible for the FBT exemption. Only battery electric vehicles (BEVs) and hydrogen fuel cell vehicles remain exempt. There is a transitional rule: if you had a financially binding commitment to provide the PHEV as a fringe benefit before 1 April 2025, it may continue to be exempt. Consult your tax adviser for transitional arrangements.
Yes. Employee contributions from after-tax income reduce the taxable value of the fringe benefit dollar-for-dollar. For car benefits under the statutory formula method, the employee contribution is subtracted from the statutory value to arrive at the taxable value. This can significantly reduce or even eliminate the FBT liability. However, the contribution must be a genuine payment for the use of the benefit, not a salary sacrifice arrangement (which has different rules).
Reportable fringe benefits (RFBA) do not directly increase your income tax. However, they do affect other government obligations and entitlements. Your RFBA is added to your taxable income to determine: HELP/HECS repayment obligations, Medicare Levy Surcharge liability, eligibility for family tax benefits and other government payments, child support assessments, and Division 293 super tax (if total income including RFBA exceeds $250,000). The RFBA appears on your income statement if the grossed-up value exceeds $2,000.

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