Fringe Benefits Tax (FBT)

Fringe Benefits Tax (FBT) on a Novated Lease is calculated using the Statutory Formula Method.

The Statutory Formula Method is based on the kilometres travelled during the FBT Year (1st April to 31st March). The first calculation within the Statutory Formula Method is to calculate the Taxable value of the vehicle. The taxable value of the vehicle is a percentage of the vehicle’s base value.

Fringe Benefits Tax can be calculated as follows:

A x B x C – E ) / D

A = The base value of the vehicle (excludes on road costs)
B = The Statutory Percentage
C = The number of days during the FBT year the car was available for private use
D = The number of days in the FBT year
E = The amount of post tax dollars the employee pays toward the operating costs of the vehicle

The table for the Statutory Percentage is as follows:

0 - 14,999 kms = 26%
14,500 - 24,999 kms = 20%
25,000 - 40,000 kms = 11%
40,001 and over = 7%


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