Fringe Benefits Tax

Frequently asked questions

What is the statutory FBT rate for car fringe benefits in Australia?

The statutory formula method applies a flat 20% of the car's base value, regardless of how many kilometres are travelled. The base value is broadly the GST-inclusive cost of the car plus non-business accessories. After the car has been held for four full FBT years, the base value is reduced by one third, lowering the taxable amount. This is general information, not tax advice — confirm current rules with the ATO.

Does a pool car always create a car fringe benefit?

A pool car generally creates a car fringe benefit whenever it is available for an employee's private use — including nights and weekends it is garaged or sits idle — unless that availability is genuinely restricted and evidenced. Clear booking, garaging and return records are the primary evidence used to reduce the number of days a car is treated as available.

Are electric cars exempt from FBT in Australia?

Eligible battery-electric and hydrogen fuel-cell cars first held and used on or after 1 July 2022, and priced under the luxury car tax fuel-efficient threshold, are exempt from FBT. The benefit is still reportable even though no FBT is payable. Plug-in hybrids stopped qualifying for the exemption from 1 April 2025 unless covered by an earlier binding financial commitment.

How does IntelliTrac help record the data needed for FBT?

IntelliTrac captures the booking, trip, odometer and garaging data that support either the statutory formula or operating cost method, attributed to drivers and vehicles. IntelliTrac AI can draft logbook entries from that data for review and approval, reducing manual record-keeping while keeping an auditable trail.