Statutory formula method

The statutory formula method works out the FBT taxable value of a car as a flat 20 percent of its base value, scaled by the days it was available for private use, regardless of how far it was actually driven.

Because it needs no logbook, the statutory formula is the default for cars without one. The key input is the number of days the car was available for private use. A car garaged at or near an employee's home counts as available even if it never moved.

The base value drops by one third after four full FBT years. Whether statutory or the logbook method is cheaper depends on business use.

Last updated 10 July 2026. General information, not tax or legal advice.