FAQ: What is the operating method of calculating FBT?
What is the operating method of calculating Fringe Benefit Tax (FBT)?
IMPORTANT INFORMATION - With the change of Government on 7 September 2013, the below information is now incorrect. For up-to-date information regarding Novated Leasing, please click here. You can also submit a quick online enquiry and one of our expert finance consultants will be in touch to discuss the smartest options with you.
After the July 2013 changes are legislated, the operating cost method will be the sole formula used to determine FBT liability.
The operating cost method relies on a continuous 12 week logbook to calculate FBT liability, and will mean businesses (and by implication, any employees driving a novated leased or employer-provided vehicle) will only be able to claim a benefit for the actual amount of a vehicle's business usage.