Fringe benefit tax (FBT): Calculating fringe benefit tax
FBT rates
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| From 1 April 2009 personal tax rates have changed, so the higher FBT rate of 64% has reduced to 61%. The following information is using the rates from 1 April 2009 onwards. If you are calculating your FBT requirements for prior to 1 April 2009, you will need to use the previous rates. Find out more on tax rate changes. |
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Rates when filing quarterly FBT returns
- In each of quarters 1 to 3 you must choose whether to pay fringe benefit tax at the rate of 49% or 61%.
- If you choose 49% in any one of quarters 1 to 3, you must complete either the full alternate rate (formerly multi-rate) calculation process or the short form alternate rate calculation option in the final quarter.
- If you choose to pay fringe benefit tax at the rate of 61% in the first three quarters, you can either complete the alternate rate calculation in the final quarter, or pay fringe benefit tax at 64%.
Decide which rate to choose based on your own situation.
Rates when filing yearly FBT returns
If you complete an annual or income year return, you can choose to either:
- pay fringe benefit tax at 61% of the taxable value of the benefits provided, or
- complete the full alternate rate calculation process or the short form multi-rate calculation option.
Note: rates for major shareholder-employees
For a major shareholder-employee, or an associated person of the major shareholder-employer (where the fringe benefit is not received as an employee), the single rate option (formerly flat rate) of 64% applies to non-attributed fringe benefits that they receive.
If a major shareholder-employee or an associate is one of the recipients of non-attributed benefits, then the FBT rate is 61% on all non-attributed benefits.
However, where it is possible to individually assign non-attributed benefits to individuals you can create two categories:
- one category for benefits for which a major shareholder-employee or an associate is not one of the recipients. Here the single rate option of 49% applies.
- another category for benefits for which a major shareholder-employee or an associate is one of the recipients. Here the single rate option of 61% applies.
Date published: 17 Jun 2009
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