FBT Calculator
Calculate Fringe Benefits Tax payable by employers for 2024–25. FBT rate: 47%. Covers car benefits, general benefits, and exempt items.
How FBT Works in Australia
Fringe Benefits Tax (FBT) is paid by employers on the non-cash benefits they provide to employees and their associates. The FBT year runs from 1 April to 31 March — different from the income tax year. FBT is separate from income tax and is not deductible against income tax (though the FBT itself is generally deductible as a business expense).
The Gross-Up Mechanism
FBT is designed to put the employer in the same tax position as if they had paid the employee a salary (taxed at the top marginal rate of 47%). To achieve this, the benefit's taxable value is "grossed up" before applying the 47% FBT rate:
- Type 1 (GST creditable benefits): Gross-up factor of 2.0802 — applies when the employer can claim a GST input tax credit on the benefit (e.g. most car benefits)
- Type 2 (non-GST creditable benefits): Gross-up factor of 1.8868 — applies to most other benefits where no GST credit applies
Common FBT-Exempt Benefits
- Portable electronic devices (laptops, tablets, phones) — one per type per employee per year, primarily for work use
- Minor benefits with a value under $300 (less-than-annual frequency rule)
- Work-related protective clothing
- In-house benefits provided at a discount
- Salary sacrifice superannuation contributions
Employee Contributions
Employers can reduce FBT by requiring employees to make after-tax contributions toward the cost of benefits. These employee contributions are subtracted from the taxable value before applying the gross-up rate.