Loading calculator…
Fringe benefits tax is 47% of the grossed-up taxable value of a benefit. Work out the taxable value of a car or other benefit, gross it up (2.0802 or 1.8868) and see the FBT payable — plus how the employee contribution method and the electric-car exemption change the answer for a novated lease.
The GST-inclusive cost of the car when first purchased.
From the fifth FBT year the base value becomes two-thirds of the cost price, so the statutory taxable value drops by a third in one step.
Out of 365. The statutory rate is 20% of the cost base.
Post-tax amounts you pay reduce the taxable value (the employee contribution method).
FBT payable (47% of grossed-up value)
$11,732
Estimated income tax + Medicare levy saved
$3,840 a year
Packaging $12,000 from pre-tax pay cuts your tax from $19,000 to $15,160. For benefits that are not FBT-exempt, the FBT above offsets this saving — that is the purpose of FBT.
Want the full take-home comparison with super and other packaged items? Use the Salary Packaging Calculator.
A $60,000 car available all year has a taxable value of $60,000 × 20% = $12,000.
Grossed up at 2.0802 that is $24,962.40, and FBT at 47% is $11,732.33 — unless the employee makes a $12,000 post-tax contribution, which reduces the FBT to nil.
A $60,000 battery-electric car under the $91,661 threshold is FBT-exempt.
No FBT is payable, and the lease and running costs come from pre-tax salary. On a $90,000 salary, packaging $12,000 saves about $3,840 a year in income tax and Medicare levy — the reason EV novated leases are popular. The benefit is still reported as an RFBA of $22,641.60.
A novated lease is a car packaged from your pre-tax salary through your employer. It creates a car fringe benefit, so FBT applies. Most leases use the employee contribution method — you pay part of the cost from your post-tax salary, which reduces the taxable value (often to nil) and removes the FBT. Enter the car's cost and your contribution above to see how it works. For an eligible electric car the exemption removes FBT entirely, which is why EV novated leases are so popular.
This page works out the FBT itself. To compare the whole deal — lease payments, balloon or residual, GST savings and take-home pay against simply buying the car yourself, for a petrol car or an EV — use the novated lease calculator.
This is an independent calculator built on the ATO's published FBT rates for the year ending 31 March 2027: a 47% FBT rate, a Type 1 gross-up of 2.0802 where GST credits can be claimed and a Type 2 gross-up of 1.8868 where they cannot, and a 20% statutory rate for cars. FBT is paid by employers, not employees, and the FBT year runs 1 April to 31 March. Always confirm your figures with the ATO or your tax agent — allowances, exemptions and reductions can change the result.
A zero or low emissions car — battery electric or hydrogen fuel cell — first held and used on or after 1 July 2022, on which luxury car tax has never been payable, is exempt from FBT. For a car first held in 2026-27 the fuel-efficient LCT threshold is $91,661. Plug-in hybrid electric vehicles (PHEVs) stopped qualifying on 1 April 2025 unless a binding commitment was already in place. Even when exempt, the value of the car is still counted towards your reportable fringe benefits amount, which can affect income-tested obligations.
Rates and thresholds are the ATO figures for the FBT year ending 31 March 2027. Verify your circumstances with the ATO.
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.
Fringe benefits tax (FBT) is a tax employers pay on certain non-cash benefits given to employees, such as a car for private use, in place of salary. It is separate from income tax and is calculated on the grossed-up taxable value of the benefit at 47%.
The gross-up reflects the income tax an employee would have paid to buy the benefit from after-tax salary. The Type 1 rate (2.0802) applies when the employer can claim GST credits; the Type 2 rate (1.8868) applies when it cannot.
The FBT year runs from 1 April to 31 March, separate from the income tax year.
The FBT rate is 47% for the year ending 31 March 2027, applied to the grossed-up taxable value of the benefit. The Type 1 gross-up is 2.0802 and the Type 2 gross-up is 1.8868.
Under the statutory method, taxable value = the car's cost × 20% × days available ÷ 365, less any post-tax employee contribution. That value is grossed up and taxed at 47%. The operating-cost (logbook) method uses total running costs × the private-use percentage instead.
No, if it is an eligible zero or low emissions car (battery electric or hydrogen fuel cell) first used on or after 1 July 2022 and under the fuel-efficient LCT threshold. It is FBT-exempt but still counted as a reportable fringe benefit. Plug-in hybrids stopped qualifying on 1 April 2025.
It is where you pay part of a car's running costs from your post-tax salary. Those contributions reduce the taxable value dollar for dollar, and a contribution equal to the taxable value reduces the FBT to nil — the usual structure for a novated lease.
The employer is legally liable for FBT. In a salary-packaging or novated-lease arrangement the cost is usually passed to the employee through their package, which is why reducing the taxable value matters.
If the grossed-up taxable value of your benefits for the FBT year is more than $2,000, your employer reports the amount on your income statement. It is not taxed again, but it counts towards income tests like the Medicare levy surcharge, HELP repayments and family assistance — even for an FBT-exempt electric car.
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.
What can move this result
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.