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FBT Calculator: Fringe Benefits Tax 2026-27

Fringe benefits tax is 47% of the grossed-up taxable value of benefits an employer gives its employees, for the FBT year from 1 April 2026 to 31 March 2027. The taxable value is grossed up at 2.0802 when the employer can claim a GST credit on the benefit and at 1.8868 when it cannot. For a car, the statutory formula values the benefit at 20% of the car's cost for the days it was available for private use, whatever the kilometres. A $48 000 ute used privately all year gives a taxable value of $9 600 and $9 385.86 of FBT. In the ATO's own example, a $60 000 car available for 182 days, with $1 000 of fuel paid by the employee, has a taxable value of $4 983. The calculator below handles cars and other benefits, the four-year base value reduction and employee contributions, and shows the reportable amount on the employee's income statement.

FBT calculator, FBT year ending 31 March 2027

Excludes registration and stamp duty; includes dealer delivery and non-business accessories.

FBT payable by the employer

$9 385.86

Taxable value$9 600
Grossed-up value (× 2.0802)$19 970
× FBT rate 47%$9 385.86
Reportable amount on the employee's income statement$18 113

An employee contribution from after-tax pay of $9 600 would reduce the taxable value to nil. Exempt benefits (eligible EVs, work devices, minor benefits under $300) are not entered here.

By Radif Partners

Publisher of calculators and practical guides · Finance Enthusiast

Updated for 2026-27 financial year · Last verified 2026-07-01

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The formula in three steps

  1. Taxable value. Each type of benefit has its own rule: the statutory formula or operating cost method for cars, the cost to the employer for an expense payment, the benchmark interest rate of 8.27% for a cheap loan, the market value for property.
  2. Gross-up. Multiply by 2.0802 (type 1, GST credit available) or 1.8868 (type 2). The gross-up turns the benefit into the salary an employee taxed at the top rate plus Medicare levy would need to earn to buy it.
  3. Rate. Multiply by 47%, the top marginal rate plus the Medicare levy. Employee contributions paid from after-tax income reduce the taxable value first.

Cars: the statutory formula

Since 1 April 2014 every new car benefit is valued at a flat 20% of base value, regardless of distance. Base value is the cost price including GST and dealer delivery and non-business accessories, without registration or stamp duty. After the car has been held for four full FBT years, base value drops by one third: the $48 000 ute becomes $32 000 and its taxable value $6 400.

Step (ATO Example 28)Amount
Base value$60 000
× 20%$12 000
× 182 days ÷ 365$5 983
− employee contribution (fuel)$1 000
Taxable value$4 983
FBT at type 1 (2.0802 × 47%)$4 871.85

The operating cost method, the alternative, takes the car's actual costs (with deemed depreciation of 25% and deemed interest) times the private use share from a logbook. It pays for cars driven mostly for work. The employer can keep the lower of the two values.

Other benefits, two examples

An employer paying $12 000 of an employee's school fees: no GST credit, so type 2, and $10 641.55 of FBT. An employer paying a $1 500 gym membership: GST credit available, type 1, and $1 466.54 of FBT. Each case shows why packaging these benefits in a private company does not pay: FBT at 47% of a grossed-up value costs as much as the employee would save at the top marginal rate.

Thresholds for the year to 31 March 2027

The full table, with car parking, record keeping and home charging figures, is on the FBT rates and thresholds page. The employee's side, the reportable amount and what it changes for HELP and the surcharge, is on the reportable fringe benefits page. A reportable amount appears once an employee's benefits exceed $2 000 of taxable value: here $18 113 for the ute.

FBT in salary packaging

Salary packaging is where most employees meet FBT. Hospitals, public benevolent institutions and charities have exemptions or rebates up to set caps, explained on the salary packaging calculator. Cars in a novated lease use the statutory formula with the employee contribution method, or the electric car exemption, covered by the novated lease calculator.

Sources

Frequently Asked Questions

How do I calculate FBT?
Work out the taxable value of each benefit, gross it up at 2.0802 if you can claim a GST credit on it or 1.8868 if not, and multiply by the FBT rate of 47%. For a car the taxable value under the statutory formula is 20% of its base value for the days it was available for private use, less any employee contribution.
When is the FBT year and when is the return due?
The FBT year runs from 1 April to 31 March; the current one is 1 April 2026 to 31 March 2027. Employers lodge an FBT return and pay by 21 May after the year ends, or later through a tax agent. An employer whose FBT for the previous year was $3 000 or more pays quarterly instalments through its activity statement.
Who pays FBT, the employer or the employee?
The employer is liable for FBT and lodges the return. Under a salary packaging arrangement the cost is usually passed back to the employee, either inside the pre-tax deduction or avoided by the employee paying the taxable value after tax. FBT is separate from income tax and the employer can deduct it.
Which benefits are exempt from FBT?
Among others: eligible electric cars, portable electronic devices used mainly for work, tools of trade, protective clothing, minor benefits under $300 that are infrequent and irregular, work-related taxi travel, and car parking at small businesses that meet the conditions. Exempt benefits are left out of the calculator: their taxable value is nil.
Can an employee reduce the FBT on a car to nil?
Yes, by paying the taxable value from after-tax income: the employee contribution method. For a $48 000 car used privately all year that is $9 600 a year, paid to the employer or spent on the car's running costs with receipts. The taxable value then falls to nil, no FBT is payable and nothing is reported on the income statement.
What is the type 1 and type 2 gross-up rate?
They convert the taxable value into the pre-tax salary an employee would need to buy the benefit. Type 1, 2.0802, applies when the employer can claim a GST credit on the benefit, such as a car or a gym membership. Type 2, 1.8868, applies when it cannot, such as school fees or rent. Both are fixed while the FBT rate stays at 47%.

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