FBT year: 1 April 2026 to 31 March 2027
Fringe benefits tax calculator
Estimate employer FBT from an already calculated taxable benefit value. For example, $10,000.00 of type 1 taxable benefits becomes $20,802.00 after gross-up and produces $9,776.94 of FBT for the year ending 31 March 2027. The FBT year differs from the income tax financial year.
Your estimate
| Grossed-up taxable value | $20,802.00 |
|---|---|
| Estimated employer FBT | $9,776.94 |
| Illustrative reportable amount | $18,868.00 |
FBT year: 1 April 2026 to 31 March 2027. See the assumptions below.
How to calculate it
- Determine the taxable value under the rules for the benefit first. This input is not necessarily its purchase price, lease payment or employer cost.
- Use type 1 gross-up (2.0802) where the employer is entitled to a GST credit for the benefit, or type 2 (1.8868) otherwise.
- Multiply the grossed-up value by the 47% FBT rate. If benefits have different GST-credit treatment, calculate each group separately and add the FBT amounts.
- Reporting uses a separate calculation. The illustrative reportable amount assumes all entered taxable benefits are reportable for one employee and applies type 2 gross-up, subject to the reporting threshold.
Frequently asked questions
Who pays fringe benefits tax?
FBT is generally an employer liability. A reportable fringe benefits amount on an employee income statement is not the same as an FBT deduction from their pay.
When should I use type 1 or type 2?
Use type 1 where the employer is entitled to a GST credit for the benefit, and type 2 where it is not. The choice depends on the benefit and credit entitlement, not whether the employee is registered for GST.
Why is the reportable amount different from the FBT calculation?
For this simplified one-employee example, reporting begins when taxable reportable benefits exceed $2,000.00. The whole reportable value is then grossed up using type 2, not just the excess. Reporting exclusions can change the result.
Can this price a novated lease or an exempt electric car?
No. Car valuation, employee contributions, exemptions, employer concessions and lease finance costs must be determined separately. Do not enter a car purchase price and treat this result as its actual FBT.
How this is worked out
- Uses the sourced FBT rate and gross-up factors for the year ending 31 March 2027. The example taxable value is illustrative.
- Assumes a taxable, non-exempt benefit and no employer rebate or exemption. It does not determine taxable value or eligibility for concessions.
- Reportable amount assumes one employee and no excluded benefits. Actual reporting and income-test treatment require the relevant ATO rules.
- Grossed-up values and tax are rounded to cents. Return-level rounding and mixed benefits can produce different totals.
Estimate only, not financial or tax advice. Read the methodology and editorial policy.