The LDA-1/2 method is employed in density functional theory calculations for the electronic structure of III-V dilute bismide systems. For the representative example of Ga(SbBi) with Bi concentrations below $10 %$, it is shown that this method works very efficiently, especially due to its reasonably low demand on computer memory. The resulting bandstructure and wavefunctions are used to compute the interaction matrix elements that serve as input to microscopic calculations of the optical properties and intrinsic losses relevant for optoelectronic applications of dilute bismides.