statutory method fbt 2023 Page 118

Need the statutory method for FBT in 2023? Here’s the quick-and-less-boring version: taxable value = Base value × 20% × (days available ÷ 365) − employee contributions.

Base value is generally the car’s purchase price including GST and any LCT, but excluding registration and stamp duty; accessories fitted at purchase are included.

After you get that taxable value, the employer applies the current FBT rate to work out the bill, and yes, it stings more than a rogue speed bump. If the car does a lot of genuine business use, crunch the numbers on the operating cost (logbook) method—it can win for high‑use fleets.

Note: eligible zero or low emissions vehicles may be FBT‑exempt under the Electric Car Discount, subject to rules and thresholds. This is general information only—confirm details with the ATO or your tax adviser.