This calculator helps Australian businesses calculate the Fringe Benefits Tax (FBT) on company cars using either the statutory formula or the operating cost method. It's designed for accountants, HR professionals, and business owners who need to manage FBT obligations efficiently.
Results
Data Source and Methodology
All calculations are based on data and formulas provided by the Australian Taxation Office (ATO). Visit the official ATO page for more information.
The Formula Explained
Statutory Formula: FBT = Car Value × Statutory Rate × (Days Available / 365)
Operating Cost: FBT = (Operating Costs - Contributions) × (Private Use %)
Glossary of Terms
- Car Value: The base value of the car for FBT purposes.
- Days Available: The number of days the car is available for private use.
- Statutory Rate: A set percentage used in the statutory formula.
- Operating Costs: Total costs incurred in operating the car.
FAQs
What is Fringe Benefits Tax?
Fringe Benefits Tax (FBT) is a tax paid on certain benefits employers provide to their employees, including the private use of a company car.
Which method should I use?
Choose the statutory formula for simplicity, or the operating cost method for potentially lower taxes if detailed records are kept.
How is the statutory rate determined?
The statutory rate is set by the ATO and can vary. Check the ATO website for the current rate.
Can I switch calculation methods?
Yes, you can choose your preferred method each year, but you must keep consistent records for the method used.
What records do I need to keep?
Keep detailed records of car usage, operating costs, and any contributions made by employees for private use.