Skip to content

We're ready to help if you're experiencing financial hardship resulting from Cyclone Alfred. Find out more

The Commissioner has updated payroll tax and duties public rulings and practice directions. See the updated rulings and direction.

Queensland Government - Queensland Revenue Office
Queensland Government - Queensland Revenue Office

Calculating the grossed-up value of fringe benefits for payroll tax

Find the grossed-up value of fringe benefits to work out how much payroll tax you need to pay.

Topics on this page
    Fringe benefits pages

    Fringe benefits are divided into Type 1 and Type 2 in the Fringe Benefits Tax Assessment Act 1986 (Cwlth) (FBT Act). The type of each fringe benefit depends on whether or not you can claim a GST input tax credit.

    Payroll tax must be paid on the grossed-up value of fringe benefits.

    To calculate the grossed-up value of fringe benefits, add the Type 1 and Type 2 total amounts (before grossing up) used in your fringe benefits tax return, and then multiply this total by the Type 2 gross-up rate.

    The formula is:

    (Type 1 aggregate amount + Type 2 aggregate amount) × Type 2 gross-up rate = Grossed-up value

    From 1 April 2024, the Type 2 gross-up rate is 1.8868.

    Any amended fringe benefit tax assessments you receive from the Australian Taxation Office will affect your payroll tax liability.

    The taxable wage value of non-cash benefits (other than fringe benefits) is the higher of the value:

    • we determine for these benefits
    • agreed between you and the employee
    • determined by you.

    If the benefit under the FBT Act is nil, the value for payroll tax is also nil.

    Also consider…

    Last updated: 21 January 2025