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Fringe Benefits Tax (FBT) Calculator

Estimate FBT payable by an employer on non-cash benefits provided to employees for the FBT year ending 31 March 2026.

Inputs

AUD
AUD
FBT rate 2025-26: 47%. Type 1 gross-up rate: 2.0802. Type 2 gross-up rate: 1.8868. The employee's contribution (ECM) reduces the taxable value before grossing up. Electric vehicles that are FBT-exempt are not modelled here.

FBT Payable

Employer FBT liability
$0

How FBT works

Fringe Benefits Tax is paid by employers — not employees — on non-cash benefits provided in connection with employment. The FBT year runs from 1 April to 31 March. The FBT rate is 47% (matching the top marginal tax rate plus Medicare levy), applied to the grossed-up taxable value of the benefit.

The grossing-up mechanism ensures that the employee receives the same after-tax value as if they had received cash and paid income tax. Type 1 benefits (where the employer can claim a GST credit) use a higher gross-up rate of 2.0802; Type 2 benefits use 1.8868.

FBT-exempt benefits include: items with a taxable value below $300 (the minor benefits exemption), certain EV novated leases, work-related items (laptops, mobile phones used primarily for work), and contributions from not-for-profit or hospital employers under the $15,900 exempt cap.

FAQ

Are electric vehicles FBT-exempt?
Battery electric vehicles (BEVs) and hydrogen fuel cell vehicles provided through a novated lease are currently FBT-exempt, provided the vehicle was first held and used on or after 1 July 2022 and the car's value is below the luxury car tax threshold ($91,387 for 2025-26). Plug-in hybrids were exempt until 31 March 2025 but are no longer exempt. Always confirm current rules with the ATO.
What is the minor benefits exemption?
Benefits with a taxable value of less than $300 are generally exempt from FBT, provided they are provided on an irregular and infrequent basis. This exemption applies per individual benefit, not per year.
What does an employee's contribution do?
Under the Employee Contribution Method (ECM), any post-tax amount paid by the employee toward the benefit directly reduces its taxable value before grossing up. This can significantly reduce the employer's FBT liability.
How much FBT can not-for-profits salary package?
Employees of public benevolent institutions (hospitals, charities) can salary package up to $15,900 in general living expenses per FBT year free of FBT, plus $2,650 in meal entertainment benefits. The grossed-up value of this is approximately $30,000.