Calculate the Fringe Benefits Tax on salary packaging, company cars, and other employee benefits. See the grossed-up value and FBT payable.
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
FBT payable
$14,665
97.8% of benefit value
Grossed-up value
$31,203
x2.0802 gross-up
Taxable value
$15,000
after employee contribution
Exemption
n/a
private sector
An employee contribution from post-tax salary reduces the taxable value dollar-for-dollar, and the gross-up means each $1 of contribution saves close to $1 in FBT.
The benefit's value is grossed up by the Type 1 or Type 2 factor, then taxed at the 47% FBT rate. Employee contributions reduce the starting taxable value.
Fringe benefits tax is what employers pay on perks given to staff in place of salary: a car, a car park, meals or entertainment. The rate is 47%, the top tax rate plus the Medicare levy, applied to a grossed-up value, so it can cost more than it looks. If you salary package, FBT decides how much the arrangement really saves you, and it shows up on your income statement as reportable fringe benefits.
An employer provides a car worth $50,000 to an employee. Using the statutory formula (20% of base value), taxable value is $10,000.
Grossed-up value (Type 1): $10,000 × 2.0802 = $20,802. FBT payable by employer: $20,802 × 47% = $9,777. This is the employer's cost ON TOP of the car itself. Employee contribution can reduce the $10,000 taxable value.
A nurse at a public hospital packages expenses up to the employer's $17,000 cap.
The $17,000 cap applies to the grossed-up value, so for benefits without GST credits (Type 2, gross-up 1.8868) it covers about $9,010 of expenses paid from pre-tax salary, with no FBT. At a 30% marginal rate plus the 2% Medicare levy, that saves about $2,883 of tax a year. Public benevolent institutions and health promotion charities have a $30,000 cap.