Skip to main content

RealMe unavailable RealMe will be undergoing scheduled maintenance this weekend and will be unavailable from 10pm Saturday 2 July - Sunday 3 July.

Delays to response times: It's taking longer than usual to answer calls and myIR messages. You may be able to use self-service options in myIR or on our self-service line, 0800 257 777. You can also find information on our website by typing in what you want to do in the search bar. Thank you for your understanding. Log in to myIR

Cost of Living Payment The Government has announced a Cost of Living Payment, which will be paid from 1 August 2022. You do not need to apply for this payment. If you are eligible, we’ll pay it into your bank account. Find out more

Fringe benefit tax rules and rate changes

Fringe benefit tax (FBT) rates changed in 2021 and a new calculation option was introduced in 2022.

Find out the updated rates to work out which is best and learn how to avoid common mistakes to get FBT right. 

Changes to FBT

2021 rate changes

FBT rates increased from 1 April 2021.

  • The single rate increased to 63.93% (from 49.25%).
  • The alternate rate increased to 49.25% (from 43%).
  • The pooling rate increased to 49.25% (from 42.86%).

This affects how much FBT you need to pay. Check if the rate you are using is still the correct one for your business.

New pooled alternate rate calculation option for 2022

A new pooled rate option is available to make it simpler for businesses to calculate FBT. This applies from 1 April 2021. You can use it to file your income year or annual return, or your return for quarter 4 of the 2021 – 22 tax year.

You can use the pooled alternate rate calculation of 49.25% for employees earning under $160,000 in gross pay and up to $13,400 each in attributed benefits for the year.

Fringe benefit tax rates

Getting FBT right

Many of the common errors we see can be avoided by keeping up-to-date with the rules and rates to help make sure you're:

  • calculating FBT correctly
  • applying any exemptions your business is eligible for
  • using the best rate to suit your circumstances
  • paying the right amount. 

Common fringe benefit tax mistakes

Fringe benefit tax

Understanding FBT on motor vehicles

The daily work-related vehicle exemption is a common area where we see misunderstandings, especially for double cab utes.

Employer provided motor vehicles for private use

If you've made a mistake

If you've made mistakes, you can fix them in myIR. 

Correct errors on my fringe benefit tax return

Make a voluntary disclosure

 Log in to myIR

In myIR you can register for FBT, file your returns, and pay your assessments.

myIR login

Jump back to the top of the page