Fringe Benefits Tax Calculator

How the Fringe Benefits Tax calculator works

1. 1

   Enter your type 1 benefits

   Type 1 benefits are those where the employer was entitled to a GST credit -- these use the higher gross-up rate. Enter the total taxable value of these benefits before grossing up.

2. 2

   Enter your type 2 benefits

   Type 2 benefits are those where no GST credit was claimed -- these use the lower gross-up rate. Enter the total taxable value of these benefits separately from type 1.

3. 3

   Add car benefit details if applicable

   For a car fringe benefit valued under the statutory formula method, enter the car's base value and the days it was available for private use. The calculator computes the car's taxable value using the statutory rate and adds it to your type 1 aggregate.

4. 4

   Read the grossed-up value and FBT payable

   The calculator applies the correct gross-up rate to each benefit type, sums the grossed-up amounts, and applies the FBT rate to show your total FBT payable for the year.

The Fringe Benefits Tax formula for 2026/27

Car taxable value = car base value x statutory rate x (days available / 365) - employee contribution Type 1 grossed-up amount = (type 1 benefits + car taxable value) x type 1 gross-up rate Type 2 grossed-up amount = type 2 benefits x type 2 gross-up rate FBT payable = (type 1 grossed-up amount + type 2 grossed-up amount) x FBT rate

• •The FBT year runs from 1 April to 31 March, not the standard financial year, so 2026/27 covers 1 April 2026 to 31 March 2027.
• •Type 1 benefits use a higher gross-up rate because the employer claimed a GST credit on them; type 2 benefits use a lower rate because no GST credit was claimed.
• •The statutory formula method for car fringe benefits applies a flat rate to the car's base value, adjusted for the proportion of the year it was available for private use, regardless of actual kilometres driven.
• •Employee contributions towards a benefit (such as payments for private use of a car) reduce its taxable value before grossing up.

Worked example: mixed benefits plus a car available all year

An employer provides $2,000 of type 1 benefits, $1,000 of type 2 benefits, and a car with a base value of $45,000 available for private use for the full FBT year (365 days), with no employee contribution.

Car base value

$45,000

Statutory rate

20%

Car taxable value

$9,000.00

Type 1 aggregate (benefits + car)

$11,000.00

Type 1 grossed-up amount

$22,882.20

Type 2 grossed-up amount

$1,886.80

Total grossed-up taxable amount

$24,769.00

FBT payable (47%)

$11,641.43

The total FBT payable for 2026/27 on these benefits, including the car, is $11,641.43.

FBT rates and gross-up factors for 2026/27

Current Australian Taxation Office Fringe Benefits Tax parameters for the FBT year 1 April 2026 to 31 March 2027.

Source: Australian Taxation Office, Australian Taxation Office, Australian Taxation Office

Who pays FBT, and what this calculator assumes

FBT is an employer liability, not an employee tax

Unlike the UK's employee-focused Income Tax on benefits, Australian Fringe Benefits Tax is levied entirely on the employer. Employees do not pay income tax on most fringe benefits directly, though reportable fringe benefits can affect certain income tests.

The type 1/type 2 split depends on GST credit entitlement

Whether a benefit is type 1 or type 2 depends on whether the employer was entitled to claim a GST credit for it, not on the kind of benefit itself. The same type of benefit can fall into either category depending on the GST treatment of the specific purchase.

The statutory formula is one of two car valuation methods

This calculator uses the statutory formula method for car benefits, which is based on the car's value and availability rather than actual usage. The alternative operating cost method uses a logbook of actual running costs and business-use percentage, and can give a different result.

Many common benefits have specific exemptions

Certain benefits, such as some work-related items and minor benefits under a value threshold, can be exempt from FBT entirely. This calculator estimates FBT on benefits you enter as taxable; check ATO guidance for exemptions before including a benefit.

Frequently asked questions

Who actually pays Fringe Benefits Tax in Australia?

The employer pays FBT, not the employee. This is a key difference from countries like the UK, where the employee pays income tax on the benefit's cash-equivalent value. In Australia, the employer bears the FBT cost directly, calculated on the grossed-up taxable value of the benefits provided.

What is the difference between type 1 and type 2 benefits?

Type 1 benefits are those where the employer was entitled to claim a GST credit on the expense, and they are grossed up using the higher rate (2.0802 for 2026/27). Type 2 benefits are those without a GST credit entitlement and use the lower gross-up rate (1.8868). The classification depends on the GST treatment, not the nature of the benefit.

How is a car fringe benefit calculated?

Under the statutory formula method used in this calculator, the taxable value is the car's base value multiplied by a statutory rate (20% for 2026/27), adjusted for the proportion of the year the car was available for private use, less any employee contribution. The alternative operating cost method instead uses a logbook of actual running costs and business-use percentage.

Why is the FBT year different from the normal financial year?

The FBT year runs from 1 April to 31 March, one quarter offset from the standard 1 July to 30 June Australian financial year. This historical quirk means FBT reporting and payment deadlines follow their own separate cycle from income tax reporting.

Are all employee benefits subject to FBT?

No. A number of benefits are exempt or subject to specific concessions, including certain work-related items, minor benefits below a value threshold, and some benefits provided by not-for-profit employers. This calculator estimates FBT on the taxable benefits you enter; check current ATO guidance for whether a specific benefit qualifies for an exemption before including it.