Calculator

What's Your Car Allowance Actually Worth?

Adjust the sliders to match your offer. See what the allowance is really worth after tax and running costs.

Updated July 2026

Want the full breakdown? Read the blog post: Car Allowances in Australian Sales: What They're Actually Worth →

Salary & Allowance

$110,000
$18,000

Driving Profile

30,000 km
$2.00
9.5 L/100km
$55,000

Running Costs

$200/mth
$2,000
$1,500
$600
$1,200

What does your employer cover?

Your Situation

The Real Picture

Car Allowance Path

Gross Allowance$18,000
Tax on Allowance (32.0% effective, incl. Medicare)−$5,760
After-Tax Value$12,240
Employer Covers$0
True Running Cost$21,650
Your Annual Gap (out of pocket)−$9,410

Company Vehicle Path (FBT)

FBT Taxable Value (20% statutory)$11,000
FBT Payable (grossed-up x 47%)$10,755
RFBA on Income Statement$20,755
Adjusted Taxable Income (salary + RFBA)$130,755

Tax Deduction (Cents per KM)

ATO deduction (5,000 km x 91c)$4,550
Tax saving on deduction$1,456

You can claim the cents-per-km deduction even if you receive a car allowance. Capped at 5,000 km.

What The Numbers Don't Show

Your car, your choice

Pick the make, model, and spec that suits you.

You're building equity

Once the finance is paid off, you own the asset.

No RFBA on your income statement

Car allowances don't inflate your adjusted taxable income the way company vehicles do.

Total flexibility

No restrictions on personal use, modifications, or how you run the vehicle.

Portability

Change jobs, keep the car. No handback, no transition period.

Running Cost Breakdown

ItemAnnual
Fuel$5,700
Tolls / E-Tag$2,400
Insurance$2,000
Servicing$1,500
Tyres$600
Registration$1,200
Depreciation (15%)$8,250
Total$21,650

Rates used (FY2026-27)

Last updated: 2026-06-30

ATO cents/km

91c

Super guarantee

12%

Medicare levy

2%

MLS tier 1 (single $105,001-$123,000)

1%

MLS tier 2 (single $123,001-$164,000)

1.25%

MLS tier 3 (single $164,001+)

1.5%

MLS tiers (family, reference)

$210,001 / $246,001 / $328,001

FBT rate

47%

FBT statutory fraction

20%

FBT gross-up (Type 1, employer FBT)

2.0802

FBT gross-up (Type 2, RFBA)

1.8868

Super on car allowance

Not compulsory

HELP repayment $0-$69,528

Nil

HELP repayment $69,529-$129,717

15% over $69,528

HELP repayment $129,718-$186,050

$9,028 + 17% over $129,717

HELP repayment $186,051+

10% of total income

All figures are estimates based on FY2026-27 Australian tax rates, FBT rates, and ATO guidelines. Individual circumstances vary. This calculator does not constitute financial or tax advice. Always consult a registered tax agent for advice specific to your situation.

Hiring for a role with a car package?

See how I benchmark the whole offer, base, super, vehicle and commission, against what the market is actually paying.

How I work with hiring managers

Evaluating an offer?

I can walk you through the full picture.

Let's talk → Back to Car Allowances