Insights About Your Fringe Benefit Tax Obligations

Unsure about your Fringe Benefits Tax (FBT) Obligations or what FBT is about? We have compiled some helpful tips that can help you.  If you own or lease a car that is available for the private use of your employee/s you may be providing a car fringe benefit.

Firstly, What is a Fringe Benefit?

A fringe benefit is a non-monetary benefit that employers pay in addition to, or as part of, an employee’s salary or wages package.

For FBT purposes, a ‘car’ is any of the following types of vehicles owned or leased by the employer and made available for the private use of an employee/s:

  • A sedan or station wagon;
  • Any other goods-carrying vehicle with a carrying capacity of less than one tonne – for example, a panel van or ute (this includes four-wheel drive vehicles);
  • Any other passenger-carrying vehicle that is designed to carry fewer than nine passengers.

A motor vehicle is exempt from FBT if all of the following conditions are satisfied:

  • A panel van, utility or other commercial vehicle (which is not designed primarily as a passenger-carrying vehicle);
  • The private use of the vehicle is limited to:
    • Travel to and from the place of work;
    • Travel requirements for work;
    • Non-work related use that is minimal, infrequent and irregular.

If you would like to read more about the requirments of an FBT exempt vehicle, read our full blog here.

Still unsure about Car Fringe Benefits? Contact Advivo’s FBT Specialist Anita Bellingham now for more information.