Car fringe benefits tax
Updated: Aug 3
The ATO has reminded us that employers may be providing a car fringe benefit if they make available a car they own or lease to an employee for their private use. So we have provided this update of fringe benefits tax (FBT) to help you stay on top of this tax within your business.
For FBT purposes, a car is any of the following: a sedan or station wagon any other goods-carrying vehicle with a carrying capacity of less than one tonne, such as a panel van or utility (including four-wheel drive vehicles) any other passenger-carrying vehicle designed to carry fewer than nine passengers. If the vehicle is not a car, and the employee has private use of it, the employer may be providing a residual fringe benefit rather than a car fringe benefit.
Private use A car is taken to be available for the private use of an employee on any day they or their associates use it, or are allowed to use it, for private purposes. If a car is garaged at or near the employee’s home, even if only for security reasons, it is taken to be available for their private use regardless of whether or not they have permission to use the car privately.