The Finance Algorithm
§ Tool · tier 2 · independent

Fringe Benefits Tax Calculator.

Calculate the Fringe Benefits Tax on salary packaging, company cars, and other employee benefits. See the grossed-up value and FBT payable.

Live dataFree, no signupOn-deviceupd February 2026
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Your numbers

Different benefit types have different FBT rules

$
$15k

The taxable value of the fringe benefit for the FBT year

Type 1 benefits have a higher gross-up rate

$
$0

Any post-tax contribution the employee makes to reduce FBT

Some employers have FBT concessions for salary packaging

The FBT year runs April to March, not July to June

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Fringe Benefits Tax (FBT) is an employer tax on non-cash benefits provided to employees — things like company cars, salary packaging, meals, and entertainment. While FBT is paid by the employer, it often impacts how salary packaging arrangements are structured and what's included in your reportable fringe benefits. The FBT rate is 47% (matching the top marginal rate + Medicare), applied to the 'grossed-up' value — making it one of the highest effective tax rates. Understanding FBT is crucial for anyone using salary packaging.

§ Worked examples

Real-world scenarios

Company Car FBT

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.

Salary Packaging at a Hospital

A nurse salary packages $15,900 at a public hospital (FBT-exempt employer).

FBT payable: $0 (exempt up to $15,900 for PBI employers). The nurse receives $15,900 from pre-tax salary — saving approximately $4,770-$7,155 in tax depending on marginal rate. This is why hospital/charity salary packaging is so powerful.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Fringe Benefits Tax (FBT)
A tax paid by employers on non-cash benefits provided to employees. The rate is 47%, applied to the grossed-up value of the benefit.
Gross-Up Rate
A multiplier applied to the taxable value to account for the GST and income tax that would have been payable. Type 1 (GST): 2.0802. Type 2 (no GST): 1.8868.
Reportable Fringe Benefits
Fringe benefits over $2,000 that must be reported on your payment summary. Affects income-tested government benefits and obligations but is NOT double-taxed.
Salary Packaging
An arrangement where part of your salary is paid as non-cash benefits instead of cash. Can provide tax savings, especially for FBT-exempt items or exempt employers.