FBT Estimator (Car Fringe Benefits)

Compares the statutory formula method against the operating cost method for a car fringe benefit, and estimates the FBT payable by the employer.

Rates & assumptions used in this calculator

FBT rate: 47%, unchanged and locked in for all FBT years from 31 March 2023 to 31 March 2027 (covers both this and next FBT year).
FBT year runs 1 April to 31 March — different from the income tax year. This tool doesn't need a year selector since the FBT rate and gross-up rates are already fixed through to March 2027.
Statutory formula method: flat 20% of the car's base value (since 1 April 2014, regardless of kilometres travelled), pro-rated for the number of days the car was available for private use, less any employee contributions.
Operating cost method: total operating costs (actual running costs entered, plus deemed depreciation at 25% diminishing value on the base value, plus deemed interest at the FBT benchmark rate on the depreciated value) × the private-use percentage, less employee contributions.
FBT benchmark interest rate for the deemed interest component: 8.77% for the FBT year ending 31 March 2026, per Taxation Determination TD 2025/3.
Gross-up rates: Type 1 (2.0802) applies where the employer can claim GST credits on the benefit — assumed here since a car is a standard taxable acquisition. Type 2 (1.8868) applies where no GST credit is available.
Employers typically calculate both methods and elect whichever gives the lower FBT liability, per car, per FBT year.

Sourced from ATO FBT rates and thresholds guidance (TD 2025/3) as at July 2026. Verify against ato.gov.au before lodging an FBT return.

Car details

$45,000 base value · 365 days

Base value (GST-inclusive purchase price)

Days available for private use

days

Employee contributions

Post-tax contributions reduce the taxable value

Operating cost method inputs

$8,000 costs · 30% private use

Actual running costs for the year

Fuel, servicing, rego, insurance (excl. deemed items below)

Private use percentage

From a valid logbook

Statutory formula

FBT payable

Operating cost method

FBT payable

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Determine FBT on employee benefits including car, accommodation, and loans. Our accountants optimize benefit packaging to minimize FBT while maintaining competitive employee value.

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This is a general estimate only, not tax advice. It doesn't verify logbook validity, the correct deemed depreciation opening value across multiple years, or GST credit entitlement. Refer to a registered tax agent to confirm the correct method and figures before lodging an FBT return.