The Finance AlgorithmTFA

Fringe Benefits Tax Calculator

AI + Live Data

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

Free to useNo data storedAI insightsUpdated: February 2026

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.

Enter Your Details

Enter Your Details

Different benefit types have different FBT rules

$

The taxable value of the fringe benefit for the FBT year

Type 1 benefits have a higher gross-up rate

$

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

Real-World Examples

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.

Frequently Asked Questions

Glossary

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.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Select the type of fringe benefit being provided.
  2. Enter the taxable value of the benefit for the FBT year.
  3. Choose whether the benefit includes GST (affects the gross-up rate).
  4. Enter any employee contributions that reduce the FBT amount.
  5. Select your employer type (charities/hospitals have exemptions).
  6. See the grossed-up value, FBT payable, and effective cost.
Key Information
  • The FBT rate is 47% for all FBT years from 2017 onwards.
  • FBT year runs 1 April to 31 March — NOT aligned with the financial year.
  • Type 1 gross-up rate (GST inclusive): 2.0802. Type 2 (no GST): 1.8868.
  • Charity and hospital employees can salary package up to $15,900 (general) + $2,650 (meals/entertainment) FBT-free.
Pro Tips
  • Employee contributions from after-tax income reduce the FBT taxable value — or can eliminate FBT entirely for car benefits.
  • Electric vehicles (EVs) are FBT-exempt if the car value is below the luxury car tax threshold — a huge benefit for salary packaging.
  • If you work at a hospital or charity, salary packaging is extremely attractive due to FBT exemptions.
  • Consider packaging items that are FBT-exempt: laptops, phones, tools of trade, and employee contributions to super.
Avoid These Mistakes
  • Assuming FBT is 'free' because the employer pays it — FBT is factored into your total remuneration package cost.
  • Not realising that reportable fringe benefits can affect income-tested government benefits (Family Tax Benefit, HECS threshold, etc.).
  • Forgetting the FBT-exempt items: work laptops, phones, protective clothing, and some portable electronic devices.
  • Mixing up the FBT year (April-March) with the financial year (July-June).
Ask AI anything