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.
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.
Understanding FBT on motor vehicles
The daily work-related vehicle exemption is a common area where we see misunderstandings, especially for double cab utes.
If you've made a mistake
If you've made mistakes, you can fix them in myIR.