Fringe Benefits Tax (FBT) Company Car Calculator – Statutory Formula & Operating Cost

Estimate Australian Fringe Benefits Tax (FBT) on a company car using either the statutory formula method or the operating cost (logbook) method. Compare results, see the formulas, and understand how FBT works.

This tool is for general information only and does not replace professional tax advice. Always check current ATO guidance or speak with a registered tax agent.

Statutory Formula Method

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Use the cost price when the car was first provided (not current market value).

FBT year runs from 1 April to 31 March (normally 365 days).

$

Only post‑tax contributions reduce the taxable value.

Current FBT rate is typically 47% (check ATO for latest year).

Most employer‑provided cars are Type 1 benefits.

Update if ATO changes the factor for a new FBT year.

Standard statutory rate is 20% for most cars.

What is Fringe Benefits Tax (FBT) on a company car?

Fringe Benefits Tax (FBT) is a tax paid by Australian employers on certain non‑cash benefits they provide to employees or their associates. A company car that is available for private use is one of the most common fringe benefits.

FBT on cars is calculated for each FBT year (1 April to 31 March). Employers can usually choose between two methods:

  • Statutory formula method – simple, based on the car’s base value and days available.
  • Operating cost (logbook) method – based on actual running costs and business use percentage.

Statutory formula method – formula & example

Step 1 – Taxable value (before gross‑up)

Taxable value = Car base value × Statutory rate × (Days available ÷ 365) − Employee contributions

Step 2 – Grossed‑up taxable value

Grossed‑up value = Taxable value × Gross‑up factor (Type 1 or Type 2)

Step 3 – FBT payable

FBT = Grossed‑up value × FBT rate

Example (illustrative only):

  • Car base value: $45,000
  • Statutory rate: 20%
  • Days available: 365
  • Employee contributions: $2,000
  • FBT rate: 47%
  • Type 1 gross‑up factor: 2.0802
  1. Taxable value = 45,000 × 20% × (365 ÷ 365) − 2,000 = 9,000 − 2,000 = $7,000
  2. Grossed‑up value = 7,000 × 2.0802 ≈ $14,561
  3. FBT = 14,561 × 47% ≈ $6,844

Operating cost (logbook) method – formula & example

Step 1 – Total operating costs

Total costs = Actual running costs + Deemed depreciation + Deemed interest

Step 2 – Private use portion

Private use % = 100% − Business use %

Taxable value (before employee contributions) = Total costs × Private use %

Step 3 – Subtract employee contributions

Taxable value = Max(0, Private use portion − Employee contributions)

Step 4 – Gross‑up and FBT

Grossed‑up value = Taxable value × Gross‑up factor

FBT = Grossed‑up value × FBT rate

Example (illustrative only):

  • Running costs: $12,000
  • Deemed depreciation: $6,000
  • Deemed interest: $2,500
  • Business use: 60% (so private use = 40%)
  • Employee contributions: $3,000
  • FBT rate: 47%, Type 1 gross‑up factor: 2.0802
  1. Total costs = 12,000 + 6,000 + 2,500 = $20,500
  2. Private use portion = 20,500 × 40% = $8,200
  3. Taxable value = 8,200 − 3,000 = $5,200
  4. Grossed‑up value = 5,200 × 2.0802 ≈ $10,817
  5. FBT = 10,817 × 47% ≈ $5,084

In this example, the operating cost method produces lower FBT than the statutory formula method.

FBT rates and gross‑up factors

The calculator lets you override the FBT rate and gross‑up factors so you can update them each FBT year. As a guide (check the ATO for current figures):

  • FBT rate: commonly 47%.
  • Type 1 gross‑up factor: used where the employer can claim GST credits (e.g. most car leases and purchases).
  • Type 2 gross‑up factor: used where no GST credits are available.

When is a car fringe benefit provided?

A car fringe benefit generally arises when:

  • the car is held by the employer (owned or leased), and
  • it is available for private use by an employee or their associate (for example, garaged at home, used for weekend trips, or for commuting in most cases).

Certain vehicles (e.g. some utes and panel vans) and certain limited private use may be exempt. Always refer to ATO guidance for the detailed rules.

Record‑keeping: logbooks and odometer readings

To use the operating cost method you generally need:

  • a valid logbook kept for at least 12 continuous weeks,
  • odometer readings at the start and end of the FBT year, and
  • evidence of all running costs (invoices, statements, etc.).

The statutory formula method has simpler record‑keeping but may result in higher FBT where business use is high.

FAQs about FBT on company cars

Is this calculator suitable for novated leases?

Yes. For many novated leases the employer is still providing a car fringe benefit to the employee. You can enter the car’s base value and running costs in the same way, but you should confirm the exact figures with your payroll provider or salary packaging provider.

Which method should I choose – statutory or operating cost?

In general:

  • If business use is low or you don’t want to keep a logbook, the statutory formula method is simpler.
  • If business use is high and you have good records, the operating cost method often gives a lower FBT liability.

Employers can usually choose the method that gives the lowest FBT for each car each year, provided they meet the record‑keeping requirements.

Do employee contributions always reduce FBT?

Only post‑tax employee contributions (for example, direct payments to the employer for private use) reduce the taxable value. Pre‑tax salary sacrifice amounts do not reduce the taxable value for FBT purposes.

Is FBT deductible for income tax?

For most businesses, FBT paid is an income‑tax‑deductible expense, and GST credits may be claimable on some underlying costs. This calculator focuses on the FBT calculation itself, not the income tax or GST consequences.

Where can I find the official ATO rules?

For the latest FBT rates, thresholds, exemptions and detailed examples, refer to the Australian Taxation Office (ATO) website or seek advice from a registered tax agent.