Free Australian FBT calculator. Calculate Fringe Benefits Tax at the current rate of 47% with Type 1 (2.0802) and Type 2 (1.8868) gross-up rates. Includes a dedicated car FBT calculator using the statutory formula method. Essential for employers providing non-cash benefits.
FBT Rate: 47.0% | Type 1 Gross-up: 2.0802 | Type 2 Gross-up: 1.8868
FBT Payable
$0.00
Annual FBT liability
Grossed-Up Value
$0.00
Type 1 gross-up applied
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Fringe Benefits Tax (FBT) is a tax paid by the employer, separate from income tax, on certain non-cash benefits provided to employees. It applies when you provide benefits such as personal use of a company car, entertainment, private health insurance, or housing, and is charged at a rate of 47%.
The FBT formula is: FBT payable = taxable value × gross-up rate × 47%. Use the Type 1 gross-up of 2.0802 where the employer can claim a GST credit on the benefit, or the Type 2 gross-up of 1.8868 where it can't. Any after-tax employee contribution reduces the taxable value dollar-for-dollar before grossing up.
Worked example. An employer provides a $10,000 Type 1 benefit. Grossed-up taxable value = $10,000 × 2.0802 = $20,802. FBT payable = $20,802 × 47% = $9,776.94. The same $10,000 as a Type 2 benefit grosses up to $18,868, so FBT payable = $18,868 × 47% = $8,867.96.
The FBT rate is 47% (equal to the top marginal tax rate plus Medicare levy). The gross-up mechanism adjusts the taxable value to reflect the pre-tax income an employee would need to earn to buy the benefit themselves. Type 1 gross-up (2.0802) applies when GST credits are claimable; Type 2 (1.8868) when they're not.
Strategies to reduce FBT include: employee contributions (reduce the taxable value dollar-for-dollar), using the operating cost method instead of statutory formula for cars driven primarily for business, providing exempt benefits (portable electronic devices, tools of trade, minor benefits under $300), and transitioning to electric vehicles which are FBT-exempt.
Multiply the benefit's taxable value by the gross-up rate, then by the 47% FBT rate. Use the Type 1 gross-up of 2.0802 if you can claim a GST credit on the benefit, or the Type 2 gross-up of 1.8868 if you can't. For example, a $10,000 Type 1 benefit grosses up to $20,802, and FBT payable is $20,802 × 47% = $9,776.94.
FBT is a tax paid by employers on certain benefits provided to employees (or their associates) in addition to salary or wages. Common fringe benefits include company cars, car parking, entertainment, and housing. The FBT rate is 47%.
The FBT year runs from 1 April to 31 March (not the standard financial year). FBT returns are due by 21 May following the end of the FBT year. For example, the 2025 FBT year covers 1 April 2024 to 31 March 2025.
Type 1 benefits are those where the employer can claim a GST credit on the benefit (gross-up rate: 2.0802). Type 2 benefits are those where the employer cannot claim a GST credit (gross-up rate: 1.8868). The gross-up accounts for the income tax the employee would have paid.
Under the statutory formula method, the taxable value is: (Base value × 20% × Days available for private use) ÷ Days in the FBT year, minus any employee contribution. Base value is the GST-inclusive cost price plus dealer delivery and non-business accessories, but excludes stamp duty, registration and CTP. The divisor is 365 in an ordinary FBT year and 366 in a leap FBT year (e.g. 1 April 2023 – 31 March 2024). The 20% statutory fraction applies regardless of kilometres travelled for cars under post-7:30 pm 10 May 2011 contracts.
Yes, zero and low-emission vehicles (battery electric and hydrogen fuel cell) are exempt from FBT, provided they were first held and used on or after 1 July 2022 and the car's value at first retail sale was below the luxury car tax threshold for fuel-efficient vehicles. Plug-in hybrids stopped qualifying from 1 April 2025; only PHEVs that were already exempt before 1 April 2025 under a financially binding commitment continue to qualify.
Sources & methodology
This FBT calculator applies the 47% FBT rate, the Type 1 gross-up of 2.0802 (GST credits claimable) and Type 2 gross-up of 1.8868, and the statutory formula method (20% fraction) for car benefits, current for the FBT year ending 31 March 2026. Figures are computed in your browser — nothing you enter is stored or sent to a server.
Authoritative sources
Reviewed by Bishal Shrestha — Founder of OneBookPlus, 10+ years building tools with Australian tax-agent and BAS-agent practices. Last reviewed and updated: May 2026.
Disclaimer: This calculator produces estimates only and is not tax advice. Tax outcomes depend on your individual circumstances. For decisions that affect your tax position, consult a registered tax agent or the ATO directly.
OneBookPlus handles invoicing, GST tracking, BAS prep, and ATO lodgement automatically.