Estimate the fringe benefits tax that may arise when an employer provides certain non-cash benefits to employees or their associates.
Fringe benefits tax is paid by employers on certain benefits provided to employees or their associates in place of, or in addition to, salary and wages. The FBT year runs from 1 April to 31 March, which is different from the standard Australian income year.
For the FBT year ending 31 March 2027, the FBT rate is 47%. The gross-up factor generally depends on whether the employer can claim a GST credit for the benefit: Type 1 benefits generally use a gross-up factor of 2.0802, while Type 2 benefits generally use 1.8868. The taxable value can also depend on the category of benefit, employee contributions, exemptions and valuation rules, so use this calculator as an estimate rather than a complete FBT return calculation.
Understand who pays FBT, how gross-up works and why benefit type matters.
The employer is generally responsible for FBT, not the employee. However, some benefits can create a reportable fringe benefits amount for the employee, which may affect income tests used for other tax and government purposes.
The FBT year runs from 1 April to 31 March. This means FBT reporting does not align with the 1 July to 30 June income year used for most income tax calculations.
Type 1 generally applies where the employer is entitled to a GST credit for the benefit, while Type 2 generally applies where there is no GST credit entitlement. Different gross-up factors are used to calculate the grossed-up taxable value.
No. Some benefits are exempt, concessionally valued or excluded from FBT when specific conditions are met. The treatment depends on the benefit and how it is provided.
In some circumstances, an employee’s after-tax contribution towards a benefit can reduce its taxable value. The GST and income tax consequences of the contribution also need to be considered.
SMH Accountants & Advisors can review your employee benefits, taxable values and FBT records before your annual return is prepared.
