FBT Calculator Australia

Providing a car to an employee? Our FBT Calculator Australia compares the statutory formula and operating cost methods side by side, so you know exactly which one gives you the lower fringe benefits tax bill.

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How This Calculator Works Out Your Car FBT

A car fringe benefit can be valued in two ways, and the amount of FBT you pay often depends on which one you use. Enter the car’s purchase price, how many days it was available for private use, and any employee contributions to get the statutory formula result. Then enter the actual running costs, deemed depreciation and interest, and your logbook business-use percentage; this gives you the operating cost result.

With our calculator, you can see which method gives you the lower FBT, so you can choose the one that saves your business the most money.

Let Us Handle Your FBT Return From Here.

Whether it’s one car or a whole fleet, our tax professionals can manage your FBT calculations, logbooks, and lodgment every year.

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FAQs

Got Questions? We've Got Answers

Straightforward answers to the FBT questions employers ask most often.

What is Fringe Benefits Tax (FBT)?

FBT is a tax employers pay on certain non-cash benefits provided to employees or their associates, such as a car for private use. It applies in place of, or in addition to, salary and wages.

What is the statutory formula method?

It works out the taxable value by applying a flat percentage to the car’s purchase price, then adjusting it for how many days the car was available for private use. No logbook needed.

What is the operating cost method?

This one adds up what it actually cost to run the car for the year, plus deemed depreciation and interest, then works out the taxable value using the private-use percentage from your logbook.

Which FBT method should I use?

Whichever method gives the lower taxable value. The operating cost method generally suits lower private-use percentages, while the statutory formula method can suit higher private use, provided the necessary records are kept.

Does FBT still apply if the car is leased instead of owned?

Yes. A valid logbook, kept for a continuous 12-week period, is required to establish your business-use percentage under this method.

What rate is FBT charged at?

FBT is charged at a flat rate on the grossed-up taxable value of the benefit, reflecting the top marginal tax rate plus Medicare levy.

Do employee contributions reduce my FBT liability?

Yes. When an employee contributes to the cost of the car after taxes, the taxable value goes down, which means that less FBT is due.

Is FBT payable on electric vehicles?

Not always. Eligible battery electric and hydrogen fuel cell vehicles under the luxury car tax threshold for fuel-efficient vehicles can be fully exempt from FBT. Plug-in hybrids lost this exemption from 1 April 2025, unless they were already under a qualifying arrangement before that date. Talk to our registered tax agents to check whether a vehicle you’re considering would qualify.

Want Your FBT Return Done Right, Every Year?

From choosing the right valuation method to keeping your logbook ATO-ready, our tax professionals can manage your car fringe benefits and FBT return from start to finish.