For the FBT year ending 31 March 2015, FBT will be payable by the employer at a rate of 47%, which represents the highest marginal income tax rate (45%), plus the Medicare levy as increased on 1 July 2014 (2%). This rate is applied to the "grossed up" taxable value of all the benefits given to employees less any contribution made by the employee. However, some benefits are exempt from FBT and others are only taxed if the value exceeds some threshold amount.