Type 1: GST in price (e.g., car, entertainment). Gross-up: 2.0802
Employee contributions reduce the taxable value of the benefit
Benefit Value
$20,000.00
FBT Payable
$19,553.88
FBT Rate
47.0%
Effective Rate
97.8%
Gross-Up
2.0802
Total Cost (Benefit + FBT)
$39,553.88
Cost Breakdown
Everything you need to know about FBT in Australia
What is Fringe Benefits Tax?
FBT is a tax paid by employers on certain non-cash benefits provided to employees (or their associates). The FBT rate is 47.0% -- the top personal tax rate plus Medicare levy. It is separate from income tax and is paid by the employer.
Type 1 vs Type 2 Benefits
Type 1 benefits are those where the provider is entitled to claim a GST credit (e.g., car, entertainment with GST). Type 2 benefits have no GST credit (e.g., residential rent, loans). Type 1 has a higher gross-up factor because it includes the GST component.
Common FBT Exemptions
Some benefits are exempt from FBT, including work-related devices (laptops, phones), minor benefits under $300, certain health and safety benefits, and electric vehicle salary packaging (for eligible EVs below the luxury car tax threshold).
Employee Contributions
Employees can reduce the FBT liability by making after-tax contributions towards the cost of the benefit. These contributions reduce the taxable value of the benefit and therefore reduce the FBT payable by the employer.
ATO-Aligned: FBT year runs from 1 April to 31 March (not the financial year). This calculator uses the current FBT rate of 47%. Consult a tax professional for complex FBT arrangements.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
Related Calculators
Salary Calculator
Calculate your Australian take-home pay after income tax, Medicare levy, and super.
Superannuation Calculator
Calculate employer super (12% SG), salary sacrifice, and contribution caps.
Employer Cost Calculator
Total employment cost including super, WorkCover, and payroll tax.
Payroll Tax Calculator
Calculate state-based payroll tax with thresholds and rates.
Novated Lease Calculator
Pre and post-tax salary deductions and FBT on vehicle leases.