Car FBT · Calculator

Car FBT Calculator

Calculate car FBT via ATO statutory formula (20%) or operating cost. Deemed depn (25% DV), deemed interest, EV exemption, 2026-27 + 2025-26.

Statutory & operating costEV exemption check

01 —INPUTS

FBT Year

FBT year runs 1 April to 31 March

Car base value (GST-inclusive)

FBT base value, not necessarily today’s market value

Employer first owned/leased

Later accessories ($)

After four years, the calculator reduces the original non-accessory base by one-third from the next FBT year

Vehicle category

Days available

Post-tax contribution

GST treatment

Operating-cost inputs

Written-down value at FBT-year start

Used for ATO deemed depreciation and benchmark interest

Business use from valid logbook (%)

Fuel / charging ($)

Maintenance ($)

Insurance ($)

Registration ($)

Enter actual costs for the days the car provided the benefit; the calculator only prorates deemed costs

02 —RESULTS

Lower estimated FBT$9,047.58

Method comparison

Statutory formula$9,776.94

Operating cost$9,047.58

Lower methodOperating cost

Difference$729.36

Detailed breakdown

03 —BREAKDOWN

Statutory formula details

Taxable value$10,000.00

Gross-up (Type 1)× 2.0802

Grossed-up value$20,802.00

FBT rate47%

Base value used$50,000.00

Statutory rate20%

Days available / FBT year365 / 365

Method choice: The comparison uses the exact amounts entered. Keep the logbook and operating-cost records before relying on that method.

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The two methods compared

	Statutory Formula (s 9)	Operating Cost (s 10)
Input needed	Base value + days available	Actual costs + 12-week logbook
Key rate	Flat 20% of base value	Business-use % from logbook
Deemed depreciation	N/A — embedded in the 20%	25% diminishing value on WDV
Deemed interest	N/A	ATO benchmark rate × WDV
Best for	Mostly-private cars, no logbook	When the entered logbook and cost records produce the lower result
Election	Default if no election	Elected per car per FBT year

Statutory formula walkthrough

Step 1 — Taxable value: Base value × 20% × (days available ÷ 365) − employee contribution

Step 2 — Grossed-up: Taxable value × 2.0802 (Type 1) or 1.8868 (Type 2)

Step 3 — FBT payable: Grossed-up value × 47%

Example: $50,000 car, full year, no contribution, Type 1 → $50,000 × 20% = $10,000 → $10,000 × 2.0802 = $20,802 → × 47% = $9,776.94 FBT

From 1 April after the fourth anniversary of the employer first owning or leasing the car, the original base is reduced once by one-third. Later-added non-business accessories are not reduced. The calculator applies that adjustment automatically from the date and accessory amount entered.

Operating cost walkthrough

Step 1 — Total operating costs: For an owned car, actual costs + deemed depreciation + deemed interest. For a leased car, actual running costs + actual lease costs, without deemed depreciation or interest.

Step 2 — Taxable value: Total × (1 − business-use %) − employee contribution

Step 3 — Grossed-up and FBT: Same as statutory — × 2.0802 × 47%

Example: $50,000 car, 60% business, $6,500 actual costs, year 1, 2026-27 FBT year:

→ Actual $6,500 + deemed dep $12,500 + deemed int $4,135 = $23,135 total

→ Private portion (40%) = $9,254

→ Grossed-up $9,254 × 2.0802 = $19,250

→ FBT = $19,250 × 47% = $9,048

For an owned car, deemed depreciation and interest use the depreciated value at the beginning of the FBT year and are apportioned when the benefit is not provided for the full year. Enter actual running costs only for the benefit period; the calculator does not apportion them a second time.

Electric vehicle exemption

→ BEV & FCEV eligibility: First held and used on or after 1 July 2022, with LCT never payable. The $91,661 threshold is a screening input for 2026-27, not a substitute for actual LCT history.

→ Electric Car Discount transition: Legislated changes apply a 15% statutory rate to eligible cars over $75,000 for arrangements from 1 April 2027, and to all eligible cars for arrangements from 1 April 2029. Existing arrangements retain their commencement treatment.

→ PHEV cutoff: Plug-in hybrids lost eligibility on 1 April 2025 unless grandfathered by a pre-existing binding commitment.

→ RFBA still applies: Even with $0 FBT payable, the employer must report the notional grossed-up value as a Reportable Fringe Benefits Amount on the income statement. That figure affects Medicare Levy Surcharge, HELP repayments, Division 293 super tax, FTB, CCS, and the Private Health Rebate.

For the deeper novated-lease comparison (including running costs and take-home-pay impact), use the EV Novated Lease Calculator. Comparing a petrol or hybrid car through a novated lease against buying outright? The Novated Lease Calculator covers the full pre-tax deduction, FBT and Employee Contribution Method (ECM) picture for any vehicle type.

Key FBT dates

Date	Event
1 April	FBT year begins
31 March	FBT year ends
21 May (generally)	Self-lodged or paper-agent FBT return and payment due
25 June (generally)	Eligible tax-agent electronic lodgment and payment due

FAQ

What is the statutory formula method for car FBT?

Taxable value = Base value × 20% × (days available for private use ÷ days in FBT year) − employee contribution. The base value is the GST-inclusive cost of the car including dealer delivery. The 20% rate has been flat since 1 April 2014 (previously a sliding scale by km). Grossed-up at 2.0802 for Type 1, then FBT 47%.

What is the operating cost method for car FBT?

Taxable value = Total operating costs × (1 − business-use %) − employee contribution. Operating costs include actual fuel, maintenance, insurance and registration, plus deemed depreciation (25% diminishing value on written-down cost) and deemed interest (ATO's FBT benchmark rate, 8.27% for the FBT year ending 31 March 2027). Business-use % requires a valid 12-week logbook every 5 years.

Which method is better — statutory or operating cost?

There is no reliable percentage shortcut because the result depends on base value, actual costs, written-down value, days available, employee contributions and private use. The calculator runs both methods from the amounts entered; the operating-cost method also requires a valid logbook and records.

How is deemed depreciation calculated for FBT?

FBTAA s 11 applies 25% diminishing value on the car's written-down value at the start of the FBT year. For a brand-new $50,000 car, deemed depreciation in the first year is $12,500. By year 4 it's around $5,273 because the WDV has dropped to $21,094. This is statute-fixed for cars held on or after 10 May 2006.

What is the FBT benchmark interest rate?

The ATO publishes the FBT benchmark interest rate annually via a Taxation Determination (TD). For the current FBT year (1 April 2026 – 31 March 2027) it is 8.27%, down from 8.62% for the year ended 31 March 2026. It applies to the deemed interest component of the operating cost method on the written-down value of the car.

Are electric vehicles exempt from car FBT?

Battery electric and fuel-cell vehicles first held and used on or after 1 July 2022 may qualify if luxury car tax has never been payable. The fuel-efficient LCT threshold is $91,661 for 2026-27, but actual LCT history matters. Plug-in hybrids lost eligibility on 1 April 2025 unless grandfathered. Even when exempt, the notional value remains reportable.

Does the FBT calculation change if the car was only available for part of the year?

Yes. The statutory formula divides by days in the FBT year, so 183 days of private-use availability halves the result. Under the operating cost method, you only count costs incurred during the availability period. A 'day of availability' means the car was available for private use, even if not actually driven — garaged at the employee's home typically counts.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.

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