Rate and gross-up rates, by FBT year
| FBT year ending | FBT rate | Type 1 gross-up | Type 2 gross-up |
|---|---|---|---|
| 31 March 2027 | 47% | 2.0802 | 1.8868 |
| 31 March 2026 | 47% | 2.0802 | 1.8868 |
| 31 March 2025 | 47% | 2.0802 | 1.8868 |
| 31 March 2024 | 47% | 2.0802 | 1.8868 |
| 31 March 2023 | 47% | 2.0802 | 1.8868 |
| 31 March 2022 | 47% | 2.0802 | 1.8868 |
| 31 March 2021 | 47% | 2.0802 | 1.8868 |
| 31 March 2020 | 47% | 2.0802 | 1.8868 |
| 31 March 2019 | 47% | 2.0802 | 1.8868 |
| 31 March 2018 | 47% | 2.0802 | 1.8868 |
Type 1 applies where the provider is entitled to a GST credit for providing the benefit; Type 2 applies where it is not. Reportable fringe benefits on an employee’s income statement are always grossed up at the Type 2 rate. For the years ending 31 March 2023 to 2027 the reporting threshold is a taxable value above $2,000, a grossed-up minimum of $3,773.
Download the table as CSV. Cite as Duguid, R. (2026). FBT rate and gross-up rates by FBT year [Data set]. https://duguid.com.au/rates/fbt-rate/. Verify against current ATO guidance before relying on a figure.
How the rate and the gross-up fit together
FBT is charged on the grossed-up taxable value, not the taxable value itself. The gross-up converts the benefit to the pre-tax salary that would have bought it, so the 47% rate then produces the same tax as the top marginal rate plus Medicare levy. A $10,000 Type 2 benefit grosses up to $18,868 and attracts $8,867.96 of FBT.
Common questions
What is the FBT rate for the year ending 31 March 2027?
47%. The ATO lists the same rate for the FBT years ending 31 March 2023 through 2027.
What are the FBT gross-up rates?
Type 1 is 2.0802 and Type 2 is 1.8868, unchanged for every FBT year ending 31 March 2018 to 2027.
When does the FBT year start and end?
It runs from 1 April to 31 March, so the year ending 31 March 2027 began on 1 April 2026.
Which gross-up rate applies to reportable fringe benefits?
The lower Type 2 rate, whether or not the benefit itself was Type 1. The reporting threshold is a taxable value above $2,000, which grosses up to $3,773.
General reference only, not tax, legal or financial advice. Figures here reflect the sources named above as at the verification date. Check current ATO guidance or the legislation before relying on a figure.
Maintained by Ryan Duguid as part of his open source Australian computational accounting tools. He is a Provisional CA ANZ Member. CA ANZ has not endorsed this site or its tools. Source and contact.