FBT Rates and Thresholds for the Year to 31 March 2027
For the FBT year from 1 April 2026 to 31 March 2027 the fringe benefits tax rate is 47%, the type 1 gross-up rate is 2.0802 and the type 2 rate is 1.8868, all unchanged since the year ending 31 March 2023. What moves each year are the indexed figures: the car parking threshold is $11.48 a day, the statutory or benchmark interest rate 8.27%, the record keeping exemption threshold $10 962, and the home charging rate for electric cars 5.47 cents per km, up from 4.2 cents per km. Car benefits use a flat statutory rate of 20%. Benefits with a total taxable value above $2 000 for an employee must be reported on the income statement, grossed up at 1.8868. Every figure below was read on the ATO's rates and thresholds page on 2026-10-11. Use the converter to go from a taxable value to the FBT payable.
Gross-up: from taxable value to FBT
FBT with a GST credit (type 1)
$977.69
The FBT on one dollar of benefit is about 98 cents with a GST credit and 89 cents without.
Your full case: FBT calculator.
Publisher of calculators and practical guides · Finance Enthusiast
The full table
| Item | FBT year ending 31 March 2027 |
|---|---|
| FBT rate | 47% |
| Type 1 gross-up (GST credit available) | 2.0802 |
| Type 2 gross-up (no GST credit) | 1.8868 |
| Car statutory formula rate | 20% |
| Deemed depreciation, operating cost method | 25% |
| Statutory or benchmark interest rate | 8.27% |
| Car parking threshold | $11.48 a day |
| Record keeping exemption threshold | $10 962 |
| Reportable fringe benefits: taxable value above | $2 000 |
| Minimum reportable amount | $3 773 |
| EV home charging rate (PCG 2024/2) | 5.47 cents per km |
| Motor vehicle other than a car, per km | 70c up to 2,500cc, 82c over, 20c motorcycles |
| Quarterly instalments if last year's FBT was at least | $3 000 |
Capped concessions for hospitals and charities
| Employer | Concession | Cap, grossed-up |
|---|---|---|
| Public benevolent institutions (not public hospitals), health promotion charities | Exemption | $30 000 |
| Public and not-for-profit hospitals, public ambulance services | Exemption | $17 000 |
| Rebatable employers | Rebate of 47% | $30 000 |
| All three: salary packaged meal entertainment and venue hire | Separate cap | $5 000 |
Converted at 1.8868, these give the spendable amounts quoted by packaging providers: $15 900, $9 010 and $2 650. See the salary packaging calculator.
Applying three of the figures
Benchmark interest. A $20 000 interest-free loan to an employee for the whole year has a taxable value of 8.27% of $20 000, $1 654. With no GST credit on interest, the FBT is $1 466.76.
Car parking. If the cheapest commercial all-day car park within a kilometre charges more than $11.48, employer-provided parking on 230 working days can create a car parking benefit. Small businesses below the turnover limit that do not use a commercial car park are exempt.
Home charging. At 5.47 cents per km, an electric car doing 12,000 km a year charged at home is credited with $656 of electricity. For an exempt electric car this is an exempt expense; for a taxable car it is part of the operating cost.
What changed from the previous FBT year
Compared with the year ending 31 March 2026, the rate and both gross-up rates are identical, so an employer's FBT on a car valued under the statutory formula is unchanged if the car's base value is unchanged. The movements are in the indexed amounts. The benchmark interest rate fell from 8.62% to 8.27%, which lowers the taxable value of cheap loans to staff and the deemed interest in the operating cost method. The car parking threshold rose from $11.03 to $11.48, so a few more city fringe car parks drop under it. The record keeping exemption threshold went from $10 664 to $10 962. The largest relative move is the home charging rate for electric cars, from 4.2 cents per km to 5.47 cents per km, which raises the electricity cost an employee can claim back or have packaged when an eligible car is charged at home.
Dates that come with these figures
- 1 April 2026: start of the FBT year these figures apply to.
- 31 March 2027: end of the year; benefits provided up to this date are counted.
- 21 May 2027: FBT return and payment due for employers lodging themselves; tax agents usually have until late June.
- Income statements for 2026-27: show the reportable fringe benefits of the FBT year ending 31 March 2027.
Why the gross-up rates are what they are
The type 2 rate is 1 ÷ (1 − 47%): the pre-tax salary needed to keep one dollar after tax at 47%, which gives 1.8868. The type 1 rate also allows for the GST credit the employer recovers: (t + g) ÷ ((1 − t) × (1 + g) × t), with t the FBT rate and g the GST rate of 10%, which gives 2.0802. Multiplied by 47%, one dollar of taxable value costs about 98 cents of FBT with a GST credit and about 89 cents without.
Sources
Frequently Asked Questions
What is the FBT rate for 2026-27?
What is the FBT car parking threshold for 2026-27?
What is the FBT benchmark interest rate?
What is the record keeping exemption threshold?
Related Calculators
Novated Lease Calculator
Pre-tax and post-tax deductions, FBT or the EV exemption, saving against buying
Salary Packaging Calculator
Hospital, PBI and charity caps with meal entertainment
Salary Sacrifice Super Calculator
Tax saved under the concessional cap, carry-forward and Division 293
FBT Calculator
Car and other fringe benefits at the 2026-27 FBT rate
Income Tax Calculator
See your ATO income tax with a bracket-by-bracket breakdown
Superannuation Calculator
Calculate your employer super guarantee contributions
Rate this page