--- title: The Statutory Formula Method & Employee Contributions Method description: Post Tax Contributions --- [Skip to content](https://support.easifleet.com.au/employee-contributions-method-ecm#main-content) English Show submenu for translations [Submit Support Ticket](https://support.easifleet.com.au/kb-tickets/new) ![Easi\_Logo\_Master-02-01 copy cropped-1.png\]](https://support.easifleet.com.au/hs-fs/hubfs/Easi_Logo_Master-02-01%20copy%20cropped-1.png?height=32&name=Easi_Logo_Master-02-01%20copy%20cropped-1.png) Open main navigation Close main navigation - English Show submenu for translations - [Submit Support Ticket](https://support.easifleet.com.au/kb-tickets/new) - Go to easifleet.com.au Go to easifleet.com.au Hello, how can we help you? - There are no suggestions because the search field is empty. 1. [Support Hub](https://support.easifleet.com.au/) 2. [General Lease Information](https://support.easifleet.com.au/general-lease-information) 3. [FBT & Payroll](https://support.easifleet.com.au/general-lease-information#fbt-payroll) # The Statutory Formula Method & Employee Contributions Method ## Post Tax Contributions **The Statutory Formula Method** is a common method of calculating Fringe Benefits Tax (FBT). Using this method, FBT is calculated in two steps. 1. The FBT Taxable Value is calculated as follows: *FBT Taxable Value = FBT Capital Value\*x Statutory Percentage\*\*x (Number of days in the FBT year the vehicle is available for use / 365)\*\*\** \*Vehicle price less on-road costs \*\*In the 2011/12 budget, the Federal Government changed the statutory percentage for calculating FBT, replacing the sliding scale statutory rates with the single rate of 20 percent. This reform applied to new vehicle contracts entered into after 7:30pm (AEST) on Monday 10 May 2011, and was phased in from 2011 to 2014 as follows: --- **The Employee Contribution Method (ECM)** of calculating Fringe Benefits Tax (FBT) is used to allow employees to partly or completely pay vehicle costs using post-tax contributions. Employee contributions made in post-tax dollars can be used to reduce the FBT Taxable Value, and the associated FBT Liability. Post-tax contributions can be used to reduce, or even eliminate, your FBT Liability. As FBT Liability is calculated using the top tax rate, this method may be more tax effective for employees with a taxable income that falls outside of the top tax rate. 1. The FBT Taxable Value is calculated as follows: *FBT Taxable Value = FBT Capital Value\*x Statutory Percentage\*\*x (Number of days in the FBT year the vehicle is available for use / 365)\*\*\*- Employee Contribution* \* Vehicle price less on-road costs \*\* In the 2011/12 budget the Federal Government changed the statutory percentage for calculating FBT, replacing the sliding scale statutory rates with the single rate of 20 percent. 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