Fringe Benefits Tax calculation
Fringe Benefits Tax is calculated by applying a gross up rate to the GST-inclusive value of the benefit, and then multiplying the result by the FBT rate:
- Type 1 Gross Up 2.0647 (for taxable supplies)
- Type 2 Gross Up 1.8692 (for non-taxable supplies)
- FBT Rate 46.5%
NOTE: Payroll Tax is also charged on fringe benefits (5.5% of the benefit, grossed-up using the Type 2 gross-up rate).