How this calculator works
This calculator is designed to help employers calculate the taxable value of a car fringe benefit using either:
- the statutory formula method, or
- the operating cost method.
This tool does not calculate the grossed-up value of the benefits or the tax payable. Rates used in this calculator are current as at March 2013.
How the statutory formula method works
The taxable value of the benefit is a percentage of the car's value.
The statutory formula method is based on the number of days during the FBT year the car is available for private use by the employee.
How the operating cost method works
The taxable value of the car fringe benefit is a percentage of the total cost of operating the car during the FBT year. This percentage is based upon actual business/private usage of a car via maintenance of a car logbook.
The operating costs of a car include some actual costs and some deemed costs. These total operating costs are different to those that are relevant for income tax purposes.