Fringe Benefits Tax calculation

How is FBT calculated?

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).

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