Taxable value of a car fringe benefit

Use the FBT car calculator

FBT car calculator

You can use the fringe benefits tax (FBT) car calculator to work out the taxable value of a car fringe benefit, and to work out the amount of FBT to pay.

You can use either the statutory method or operating cost method.

Manually calculate taxable value

You can calculate the taxable value of a car fringe benefit using either the:

• statutory formula method
• operating cost method (if you have adequate records).

Once you know the taxable value of the fringe benefit, use this value to calculate the FBT to pay and ensure you keep the appropriate records.

You can learn how to use these methods by watching the Calculating your car fringe benefits video seriesExternal Link.

Choosing the best method to calculate taxable value

You can use either method:

• for any or all of your cars
• regardless of which method you used in a previous year.

You don't need to tell us which method you've used, because your business records will show this. But you must choose your preferred method by the day your FBT return is due, or by 21 May if you don't need to lodge a return.

If you:

• have a fleet of 20 or more cars, there's an optional simplified record-keeping approach – see PCG 2016/10 Fleet Cars: simplified approach for calculating car fringe benefits in our legal database
• provide your employee with extensive private use of an eligible commercial vehicle, the rules for working out your FBT are different – see Taxable value of eligible vehicles.

Statutory formula method

To calculate the taxable value of car fringe benefits under the statutory formula method, you use:

• A, the base value of the car, which is the cost price you (or a lessor) paid for the car  
  • excluding registration and stamp duty
  • after any trade-in or cash payment by the employee
  • plus the cost of any fitted non-business accessories, dealer delivery charges, and any GST and luxury car tax
• B, the statutory percentage, which is 20% (unless you had an arrangement in place before 31 March 2015)
• C, the number of days in the FBT year when the car was used or available for private use of an employee
• D, the number of days in the FBT year (365, or 366 in a leap year)
• E, the employee contribution.

The taxable value is (A × B × C ÷ D) − E.

Operating cost method

To use the operating cost method you must have adequate records to determine the car costs, logbook records and odometer records to apportion the private use.

If you don't have these records, you must use the statutory formula method.

To calculate the taxable value of car fringe benefits under the operating cost method, you need to know:

• A, the total operating costs (including deemed costs for depreciation and interest)
• B, the percentage of private use (based on logbooks)
• C, the employee contribution.

You can then work out the taxable value, which is (A × B) − C.

Records you need to keep

When record keeping for FBT, you must keep records that:

• show how you calculated the taxable value of the car fringe benefit
• support any exemption or concession you used.