Category Archives: Product Updates

2023 FBT rates (Fringe Benefit Tax)

2023 FBT Rates are high, and worth minimising

2023 FBT rates (Fringe Benefit Tax) are unchanged from the prior year. However, if you’re an employer in New Zealand, you are likely to already know that the FBT rates increased significantly in the prior tax year. The changes, which came into effect on 1 April 2021, meant that the single rate moved from 49.25% to 63.93%, the alternate rate increased from 43% to 49.25%, and the pooling rate moved from 42.86% to 49.25%. The result was a 30% increase in FBT liability for most taxpayers who continue to use the single rate to calculate their FBT.

The good news is that there are steps you can take to minimise the impact of these changes on your business. One option is to perform an FBT attribution calculation in the final FBT quarter (1 January to 31 March each year). This means benefits provided over the course of the year are taxed at each employee’s marginal tax rates per their income level.

Attribution is now critical

Employers who use the attribution method can keep FBT costs to a minimum, especially where there are a large number of employees earning under the top tax rate threshold of $180,000 p.a. To illustrate this point, let’s look at an example:

EmployeeBenefitPayBenefit value2021 Single rate2023 Single Rate2023 Attribution
JohnMotor vehicle$150,000$8,000$3,940$5,114$3,940
Example comparing 2021 single rate with the increase to 2023 single rate, and how attribution can reduce FBT costs

As you can see, the FBT liability is significantly lower under attribution than under the single rate for each employee. It’s important to note that employers need to have the right data available to perform their attribution calculation in the final quarter. This includes knowing which employees have received which benefits and the corresponding value.

There are significant cash flow benefits in having the confidence to lock in the alternate rate for the first 3 quarters of the FBT year. Employers who are unsure of how to perform their FBT attribution calculation can contact their tax adviser or use FBT calculation software like Taxlab to simplify the process.


In summary, the 2023 FBT rates may result in an overpayment of up to 30% in FBT if you are using the single rate method. By performing an FBT attribution calculation, employers can keep FBT cost increases to a minimum. Employers should start looking into this now. With the help of FBT calculation software or a tax adviser, employers can simplify the FBT attribution calculation and save tax costs.

Be in to win Apple, Samsung and other prizes

Be in to win

Request a demo today of any of Taxlab’s products and you, and the person who referred you, will go into a weekly prize draw until 20 May 2022.

Enter Now

Terms and Conditions
  1. These terms and conditions apply to the Taxlab Demo Promotion (Promotion) conducted by Taxlab Limited, 3C Rothwell Avenue, Rosedale, Auckland, 0632, New Zealand (Taxlab).
  2. The Promotion begins on 4 April 2022 and ends 20 May 2022 (Promotion Period).
  3. To be eligible for the Promotion you must be a NZ resident, be at least 18 years old, enter during the Promotion Period, be authorised to enter the Promotion on behalf of your organisation and any person whose details you provide; and not be an employee or contractor of Taxlab or its related entities.
  4. To enter this Promotion, you must sign up to the Promotion web page accessed via the Promotion email during the Promotion Period.
  5. Valid entries are eligible to go into a weekly prize draw to win one of multiple prizes (Prizes).
  6. Taxlab will randomly select prize winners weekly (Winners). Winners will be notified by email and must provide a delivery address within five working days to receive Prizes. By accepting any Prizes from Taxlab, you consent to Taxlab using your name and photos for promotional purposes unless you tell us otherwise in writing.
  7. Prizes are not negotiable, transferrable, or exchangeable, and cannot be taken as cash.
  8. By entering the Promotion, you agree that Taxlab may collect, hold, and use your personal information in accordance with our Privacy Policy and to conduct the Promotion, and that you are authorised to provide any personal data prior you submit to Taxlab and you indemnify Taxlab for any claim arising out of your failure to procure such authorisation. 
  9. Taxlab’ decisions on all matters regarding the Promotion are final and no correspondence will be entered into.
  10. Taxlab reserves the right, acting reasonably, to extend, change, or terminate all or part of the Promotion at any time without notice.
  11. To the extent permitted by law, Taxlab excludes any liability it may have to you arising directly or indirectly out of or in connection with this Promotion.
  12. You are deemed to accept these terms and conditions at the time of entering into the Promotion.

Taxlab and Tax Traders – A New Era

Launch of New Partnership

We are excited to announce the launch of a tax technology partnership in New Zealand. Today marks the first day of an exclusive new partnership between Taxlab and Tax Traders, a leading tax pooling intermediary and one of NZ’s fastest growing fintech companies.

Our mission has always been about enabling technology to take the pain, risk and cost out of tax administration. This partnership will help further our mission and revolutionise the way New Zealanders pay income tax, both now and into the future.

Check out what this partnership could mean for you!

“Tax Traders has disrupted the traditionally complex and cumbersome world of tax payments via the tax pooling framework, and we’re delighted to be able to partner with them in this way.”

Allen Knight, CEO of Taxlab

New Offering for Corporates

To celebrate the launch of this partnership, we unveil a new offering: Tax Traders Corporate.

This offering provides companies with an enhanced suite of tools that provide automatic access to consolidated tax information so they can make smarter and more efficient decisions and do this in a fraction of the time! More companies will now be able to pay their income tax in the way that suits them best and reflects their unique business model.

Scholarship and Support

Marking this significant moment, we are also launching a new $30,000 tax technology scholarship, Cultivate.

The scholarship program will identify and grow untapped potential in the field of technology, creating opportunities for students who may otherwise face significant barriers to pursuing a future in the industry.

And This Is Just the Beginning

We have been working together on various projects over the last couple of years. This partnership is a key step towards our vision and reflects the growing desire of both parties to collaborate.

Our approach to collaborating and integrating with other innovative technology solutions like Xero and Tax Traders means we can continue to help create a highly efficient process between taxpayers, tax agents and tax authorities.

Taxlab FBT Software

2021/2022 FBT Update – Free Webinar

The new FBT rates for 2021/2022 are:

  • Single rate = 63.93% (previously 49.25%);
  • Alternate rate = 49.25% (previously 43%); and
  • Pooling rate = 49.25% (previously 42.86%).

After positive feedback from our earlier presentations, we are hosting one final webinar before the first 2021/22 quarterly calculation is due.

PwC and Taxlab – 17 June 2021 – Webinar registration

Taxlab are pleased to have Josie Goddard of PwC to talk us through the technical FBT changes and help you understand the different options for calculating FBT payable. Josie will use a case study to show the impact of the higher 63.93% FBT rate.

To close, we will showcase how FBT software provide a real opportunity for employers and advisers to save tax, better manage cashflow and efficiently complete the FBT return with automated de minimis, attribution and pooling optimisation as well as sense checks, reports and analytics.

Register your interest now.


Josie Goddard, PwC New Zealand

Josie is a Senior Manager in PwC’s employment tax practice and brings 8 years of experience in advising large employers. She has led many payroll reviews focusing on employment taxes and has managed a number of Inland Revenue reviews and audits. Josie leads PwC’s policy submissions in relation to employment tax and was PwC’s lead specialist in relation to the recent payday reporting changes.

Jeremy Dobbie, Taxlab

Jeremy has over 10 years of experience working at PwC NZ, Thomson Reuters and EY UK, and exclusively with tax & accounting technology since 2013. He joined Taxlab in 2019 to help ensure the compliance needs of accountants and tax professionals are understood and connected with the relevant solution.

FBT Trainings 2020

To help during lockdown, this year we are offering free online FBT software training. We also highlight some excellent FBT technical sessions hosted by our partners.

Free Taxlab FBT software training

If you are new to Taxlab, or would like a refresher, please register today for a free online training:

  • Tuesday, 28 April at 2pm
  • Tuesday, 12 May at 11am
  • Tuesday, 19 May at 11am
  • Monday, 25 May at 2pm

Each session is 1 hour long, qualifies for CPD hours and covers the fundamentals of Taxlab FBT, including:

  • Importing benefits
  • Managing motor vehicles
  • Importing employee salary data
  • Full attribution calculation and Q4 true-up
  • Finalising and filing FBT returns

FBT technical training

Want to brush up on your FBT technical knowledge or understand the latest employee tax developments in a Covid-19 world?

Our partners are offering some useful FBT technical sessions over the next month:

Taxlab Australia

Taxlab to enter Australian market

Industry heavyweight Mike Roberts named to lead Taxlab Australia

MELBOURNE, Australia – Leading provider, Taxlab, announced today its planned entry into the Australian market, which will bring its revolutionary tax compliance software to Australian customers for the first time.

The New Zealand-based company will enter the Australian tax compliance software market in 2019 under the leadership of Mike Roberts, a 20-year veteran of the global tax technology market.

Roberts spent five years at Thomson Reuters leading the company’s European, Middle East and Africa (EMEA) tax and accounting business. Most recently, he led EY’s Oceania Tax Technology advisory team providing direct experience of the trans-Tasman market.

Mike Roberts“I’m hugely excited to be joining Taxlab at this major milestone in the business’s life. The market is demanding high quality, proven cloud-based tax reporting products and I’m very much looking forward to delivering on those needs with Taxlab’s revolutionary platform.” – Mike Roberts, Taxlab Australia

Taxlab is unique in its ability to provide a single, cloud-based approach to collate, process and complete tax compliance for every taxpayer, regardless of their entity type, size or complexity. This is a true differentiator for tax compliance software, and comes at a time when the Australian market is seeking to modernise its tax compliance systems.

Allen Knight“Welcoming Mike into Taxlab is an exciting time for us as we bring our unique tax solutions to the Australian market. With an outstanding track record of building and leading international tax technology businesses, Mike further strengthens our executive leadership capability.” – Allen Knight, Taxlab Managing Director.

Taxlab is New Zealand’s leading solution for tax compliance and reporting. Founded in 2009 by Allen Knight and Karl Farrand, who previously led Deloitte’s in-house tax technology team, Taxlab’s current client base includes more than 150 of New Zealand’s largest corporates and firms, including three of the “big four” accounting firms.

For more information or to arrange media interviews, please contact Mike Roberts at or on +61 499 000 264.