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.
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 $19,320 to $15,480. 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 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.
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.
ATO rates checked against official sources — verified 19 July 2026
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
Rates and thresholds last updated for the 2026–27 financial year.