Cars on the ATO’s ‘FBT Radar’

Posted on Feb 12, 2013 | 0 comments


The Australian Tax Office has made it clear that cars are on their FBT radar (their term).

From the ATO website:

This financial year we will be conducting a campaign to make sure employers who have purchased a car during the 2011 and/or 2012 fringe benefits tax (FBT) year are aware that they may have FBT obligations.

Data we have obtained from various motor vehicle registering bodies has assisted us in identifying employers who have purchased a business registered vehicle but have not registered for FBT.

We are writing to about 5,000 employers who fall into this category, to tell them about car fringe benefits and what they need to do to comply with FBT obligations.

If you are an employer and you make a car available to your employees for private use, you will most likely have an FBT liability.

We are particularly highlighting that:

• if a car is garaged at home, it is taken to be available for private use

• as a general rule, travel to and from work is private use of a vehicle

• there are only limited circumstances where an employee’s private use of a car is exempt from FBT.

For more detail, refer to Car fringe benefits. For assistance in any matters related to FBT on cars or otherwise please contact us at JWA Business & Wealth.


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