FBT Exempt Car Benefits

Are you?	- An employer who provides car benefits to your employees?
At a glance:	- The Tax Office has released the latest list of vehicles that may be exempt from Fringe Benefits Tax [FBT].
You should:	- Be aware of the motor vehicles that are eligible for the FBT car benefit exemption.                                                           - Contact us if you require any clarification or advice.

1. Generally, motor vehicles provided to employees or their associates are subject to FBT if they are used or are available for private use.
   
   
2. Each year the ATO publishes a comprehensive but not exhaustive list of motor vehicles which may be eligible for an exemption from FBT.
   
   
3. The ATO stresses that vehicles that are included in the listing are not automatically exempt from FBT, but rather depend on whether the eligibility criteria for the exemption are met.
   
   
4. To be eligible for the exemption, an employee's private use of a taxi, panel van, utility or other commercial vehicle must be limited to:
   
   a. Travel between home and work;
   b. Incidental travel in the course of ordinary duties of employment; or
   c. Where the private use is minor, infrequent and irregular.
   
   
5. In most cases, panel vans, utility vehicles and other commercial vehicles would be eligible for this exemption.
   
   
6. Click here for the latest list of eligible exempt motor vehicles, or visit the Tax Office website at www.ato.gov.au

Remember:

- Some motor vehicles fall in the category of exempt car fringe benefits.