24/07/2026
3 ways to reduce how much fringe benefits tax you pay
1. Get an EV as they are exempt from FBT (depending on price) until 1st of April 2029. You can also use the Employee Contribution Method (ECM) to make some extra payments from your post-tax salary, this can reduce your FBT liability.
2. If your organisation is classified as a not-for-profit organisation, public or not-for-profit hospital or public ambulance service. There is a capped threshold, so a certain portion is FBT exempt. You can learn more on the ATO's website.
3. Choose a low cost car. As fringe benefits tax is calculated on the value of the car, a cheaper option can reduce your tax bill.
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