How to do full alternate rate calculations for fringe benefit tax (FBT).
This information applies if you have chosen to use the full alternate rate calculation in your:
- quarter 4 return (1 January to 31 March)
- income year return
- annual return
- final quarterly return if you have stopped employing staff and no longer providing fringe benefits.
Completing alternate rate calculations in myIR
If you’re filing FBT returns in myIR using the worksheet option, the calculations are done for you. You only need to enter the base information about your employees, or pooled non-attributed benefits.
For help with completing alternate rate calculations in myIR, go to Part 7 - How to complete alternate rate calculations in myIR in the Fringe benefit tax guide – IR409.
The guide takes you through the steps to complete worksheets for the:
- full alternate rate calculation
- short-form alternate rate calculation
- pooled alternate rate calculation.
Thresholds and rates for 2025 and 2026 years onwards
There are 2 sets of rates and thresholds due to a change to income thresholds from 31 July 2024.
If you are manually calculating FBT for the 2025 or 2026 years and onwards, make sure you are using the thresholds and rates for the return period year you’re completing.
Manually calculating full alternate rate for attributed benefits
You can use our paper worksheets to complete your calculations for the tax year ending 31 March 2025 or the 2026 years onwards.
Calculation worksheets:
- FBT alternate rate calculation sheet – quarterly returns – IR417
- FBT alternate rate calculation sheet – income year returns – IR418
- FBT alternate rate calculation sheet – annual returns – IR419
Find FBT calculators and worksheets
Complete columns 1 to 9 for employees receiving attributed benefits.
1 Employee name
Add the name for each employee (tick for major shareholder-employees).
2 Income
This is the total income (cash remuneration) paid to each employee for the tax or income year.
For FBT purposes, cash remuneration (income) includes:
- salary or wages
- lump sum bonuses
- schedular payments
- income other than from PAYE income payments to a shareholder-employee
- attributed income.
Major shareholder-employee cash remuneration includes interest and dividends received from the employer or related employer.
3 Tax on income
Calculate the tax on income for each person using the thresholds and rates for the tax year you’re working on.
Tax on income is calculated on the whole dollar amount (no cents) to 2 decimal places.
2026 year onwards – from 1 April 2025
| Income thresholds | Income tax rate | Accumulated income tax brackets |
|---|---|---|
| $0 - $15,600 | 10.5% | $1,638 |
| $15,601 - $53,500 |
17.5% |
$8,270.50 |
| $53,501 - $78,100 |
30% | $15,650.50 |
| $78,101 - $180,000 |
33% | $49,277.50 |
| $180,001 upwards |
39% |
2025 year – 1 April 2024 to 31 March 2025
| Income thresholds | Income tax rate | Accumulated income tax brackets |
|---|---|---|
| $0 - $14,000 | 10.5% | $1,470 |
| $14,001 - $15,600 |
12.82% |
$1,675.12 |
| $15,601 - $48,000 |
17.5% |
$7,345.12 |
| $48,001 - $53,500 |
21.64% |
$8,535.32 |
| $53,501 - $70,000 |
30% | $13,485.32 |
| $70,001 - $78,100 |
30.99% | $15,995.51 |
| $78,101 - $180,000 |
33% | $49,622.51 |
| $180,001 upwards |
39% |
4 Net income
Net income is the employee’s income, less tax on income (both are in dollars and cents).
5 Total fringe benefits
This is the total value of attributed fringe benefits provided to the employee for the year. If you file quarterly returns, enter the fringe benefits provided to the employee in each quarter and add together for the total.
Total fringe benefits are in dollars and cents.
Note: the total fringe benefits provided to an employee is not the amount of FBT assessed in quarters 1 to 4.
6 Total remuneration
This is the employee’s net income in dollars and cents plus the total fringe benefits for the year. Total remuneration is the fringe benefit-inclusive cash remuneration.
7 Tax on total remuneration
Calculate the tax using the total remuneration thresholds and the tax rates for FBT for the tax year you're working on. Tax on total remuneration is calculated on whole dollars.
2026 year – from 1 April 2025
| Total remuneration thresholds |
Tax rate for FBT |
Accumulated tax brackets |
|---|---|---|
| $0 - $13,962 | 11.73% | $1,637.74 |
| $13,963 - $45,230 |
21.21% |
$8,269.68 |
| $45,231 - $62,450 |
42.86% |
$15,650.17 |
| $62,451 - $130,723 |
49.25% |
$49,274.62 |
| $130,724 upwards |
63.93% | |
2025 year – 1 April 2024 to 31 March 2025
| Total remuneration thresholds |
Tax rate for FBT |
Accumulated tax brackets |
|---|---|---|
| $0 - $12,530 |
11.73% | $1,469.76 |
| $12,531 - $40,580 |
21.21% |
$7,419.16 |
| $40,581 - $55,980 |
42.86% |
$14,019.60 |
| $55,981 - $129,680 |
49.25% |
$50,316.85 |
| $129,681 upwards |
63.93% | |
8 Tax on net income
Calculate the tax on net income using the tax on total remuneration thresholds and tax rates for the year you’re working on. Tax on net income is calculated on whole dollars.
9 FBT payable for the year
The difference between the tax on total remuneration and tax on net income is the total amount payable for the year.
For quarterly returns, FBT to pay in quarter 4 is FBT payable for the year, less FBT assessed from quarters 1 to 3.
Pooled non-attributed fringe benefits in paper worksheets
Replace the employee's name with 'pooled'.
Pooled non-attributed benefits for major shareholder-employees must be shown separately from other employees. Include the FBT rate you’re using, for example:
- pooled benefits (major shareholder-employees) 63.93%
- pooled benefits (all other employees) 49.25%
- pooled vehicles (major shareholder-employees) 63.93%
- pooled vehicles (all other employees) 49.25%.
Complete column 5 (total fringe benefits) and column 9 (FBT payable) in the calculation worksheet. Leave columns 2, 3, 4, 6, 7 and 8 blank.
When employee’s income is not known
If you do not have all the employee’s income details when you file your quarter 4 or annual return, the calculation for FBT payable is based on the total attributed fringe benefits the employee received in the tax year multiplied by the FBT rate, 49.25% or 63.93%.
This only applies to shareholder-employees and employees who receive attributed income from a company or trust that is their employer.
If you use 49.25%, you must complete a remuneration adjustment in next year's quarter 4 or annual return.
If you use 63.93%, you do not need to make a remuneration adjustment in the next year.
A remuneration adjustment is made by calculating FBT payable based on the employee's income and tax from the previous year minus FBT already paid for that employee in the previous year.
More information
Attributing fringe benefits to individual employees
Calculation options and rates for FBT
Find FBT calculators and worksheets
For detailed examples of calculations for 2025 and 2026 tax years, go to Part 7 of the Fringe benefit tax guide – IR409.