Work out the fringe benefits tax on a car provided to an employee, using the ATO's statutory formula method.
Key facts
- Under the statutory formula, a car's taxable value is 20% of its base value a year, pro rata for the days it's available for private use, less the employee's after-tax contribution.
- FBT is the taxable value grossed up (2.0802 if the employer can claim GST credits, otherwise 1.8868) times the 47% FBT rate.
- On a $50,000 car available all year, that's a taxable value of $10,000.00 and $9,776.94 of FBT; an after-tax employee contribution of $10,000.00 brings it to $0 (the novated lease 'employee contribution method').
- Once the car has been held for 4 FBT years, the base value is reduced by a third.
- Eligible electric cars under the luxury car tax threshold can be exempt from FBT.
FBT by car value (available all year, no contribution)
| Base value | Taxable value | FBT (type 1) | Contribution to remove FBT | Reportable amount |
|---|---|---|---|---|
| $30,000 | $6,000.00 | $5,866.16 | $6,000.00 | $11,320 |
| $40,000 | $8,000.00 | $7,821.55 | $8,000.00 | $15,094 |
| $50,000 | $10,000.00 | $9,776.94 | $10,000.00 | $18,868 |
| $60,000 | $12,000.00 | $11,732.33 | $12,000.00 | $22,641 |
| $70,000 | $14,000.00 | $13,687.72 | $14,000.00 | $26,415 |
| $90,000 | $18,000.00 | $17,598.49 | $18,000.00 | $33,962 |
FBT year ending 31 March 2027. Not included: the operating cost (logbook) method and the electric car exemption.
Common questions
How is FBT on a car calculated?
Taxable value = base value × 20% × days available ÷ days in the FBT year − employee contribution. FBT = taxable value × gross-up rate (2.0802 or 1.8868) × 47%.
How much FBT is payable on a $50,000 car?
$9,776.94 a year if it's available for private use all year, the employer claims GST credits and the employee contributes nothing.
How do I reduce FBT on a car?
The employee can pay an after-tax contribution towards the car's running costs. A contribution equal to the taxable value ($10,000.00 on a $50,000 car) reduces the FBT to $0. Logbook records under the operating cost method can also reduce it.
Does a car fringe benefit show on my income statement?
Yes, if your total reportable fringe benefits for the FBT year are more than $2,000: the taxable value is grossed up at 1.8868 (the lower rate, whatever the type) and reported on your income statement.
See also the novated lease calculator and the salary packaging calculator.
Sources: ATO FBT rates and thresholds, taxable value of a car fringe benefit, FBT return instructions (statutory formula, one-third reduction) and electric cars exemption. Checked 22 October 2026.