FBT Car Benefit Calculator
Statutory formula method for employer-provided vehicles in medical practices.
Car benefit
Statutory formula method (most common).
Employer can claim GST credits on car costs.
FBT result
- Statutory fraction
- 20%
- Taxable value
- $10,000
- Grossed-up value
- $20,802
- FBT payable
- $9,777
- FBT rate
- 47%
Providing a car to a doctor or staff member is common in medical practices, but it triggers fringe benefits tax unless structured carefully. The statutory formula method is the default for most employer-provided cars, and it is what this calculator uses.
Statutory formula vs operating cost
The statutory formula method bases the taxable value on the cost of the car and the kilometres travelled, regardless of actual running costs. It is simpler but can produce a higher FBT liability than the operating cost method if the car is expensive but cheap to run.
The operating cost method requires logbooks and records of all running costs. It is more work but can be cheaper for low-kilometre or efficient vehicles. You can switch methods each year.
Employee contributions reduce FBT
If the employee contributes towards the cost of the car — either by paying running costs or making a post-tax contribution — that amount reduces the taxable value dollar for dollar.
Contributions must be paid from after-tax income. Salary sacrificing the contribution does not reduce the taxable value.
GST and gross-up
The FBT gross-up depends on whether the employer can claim GST credits on the car costs. Type 1 gross-up applies when GST credits are available; Type 2 applies when they are not. The difference is material — Type 1 is roughly 10% higher.
Frequently asked questions
What is the statutory formula method?
It bases the taxable value on the cost of the car and the kilometres travelled, not the actual running costs. Since 2023 the statutory fraction is 0.20 for all distance bands, which simplified the old banded fractions.
Do employee contributions reduce FBT?
Yes. Contributions paid from after-tax income reduce the taxable value dollar for dollar. Salary-sacrificing the contribution does not reduce the taxable value, so the source of the money matters.
What is the FBT year?
The FBT year runs 1 April to 31 March, not the standard 1 July to 30 June financial year. The days the car is available are counted within that FBT year.
Related calculators
This calculator provides general information only and is not tax advice. It does not account for your individual circumstances. Confirm figures against the relevant legislation or with a registered tax agent before relying on them for a lodgement.
Reviewed by eHealth Systems Pty Ltd