You can use the fringe benefits tax (FBT) car calculator to work out the taxable value of a car fringe benefit, and to work out the amount of FBT to pay.
You can use either the statutory method or operating cost method.
You can calculate the taxable value of a car fringe benefit using either the:
Once you know the taxable value of the fringe benefit, use this value to calculate the FBT to pay.
You can learn how to use these methods by watching the Calculating your car fringe benefits video seriesExternal Link.
Choosing the best method to calculate taxable value
You can use either method:
- for any or all of your cars
- regardless of which method you used in a previous year.
To use the operating cost method you must have adequate records, such as log books, to determine car costs and the proportion of private use. If you don't have these records, you must use the statutory formula method.
You don't need to tell us which method you've used, because your business records will show this. But you must choose your preferred method by the day your FBT return is due, or by 21 May if you don't need to lodge a return.
- have a fleet of 20 or more cars, there's an optional simplified record-keeping approach – see PCG 2016/10 Fleet Cars: simplified approach for calculating car fringe benefits in our legal database
- provide your employee with extensive private use of an eligible commercial vehicle, the rules for working out your FBT are different – see taxable value of eligible vehicles.
To calculate the taxable value of car fringe benefits under the statutory formula method, you use:
- A, the base value of the car, which is the cost price you (or a lessor) paid for the car
- excluding registration and stamp duty
- after any trade-in or cash payment by the employee
- plus the cost of any fitted non-business accessories, dealer delivery charges, and any GST and luxury car tax
- B, the statutory percentage, which is 20% (unless you had an arrangement in place before 31 March 2015)
- C, the number of days in the FBT year when the car was used or available for private use of an employee
- D, the number of days in the FBT year (365, or 366 in a leap year)
- E, the employee contribution.
The taxable value is (A × B × C ÷ D) − E.
For details on each of these, see FBT guide: 7.4 Statutory formula method in our legal database.
To calculate the taxable value of car fringe benefits under the operating cost method, you need to know:
- A, the total operating costs (including deemed costs for depreciation and interest)
- B, the percentage of private use (based on log books)
- C, the employee contribution.
You can then work out the taxable value, which is (A × B) − C.
For details on each of these, including examples, see FBT guide: 7.5 Operating cost method in our legal database.Use the FBT car calculator or work out taxable value manually with the statutory method or operating cost method.