Thursday, 22 November 2012

Cars on the taxman’s FBT Radar

The ATO is conducting a campaign to make sure employers who have purchased a car during the 2011 and/or 2012 fringe benefits tax (FBT) year that they may have FBT obligations.

Information has been obtained from various motor vehicle registering bodies to identify employers who have purchased a business registered vehicle but have not registered for FBT.

They will be writing to 5,000 of those employers to help them understand car fringe benefits and what they need to do to comply with FBT obligations.

As business, you should note that:

1       If a car is garaged at home, it is taken to be available for private use;
2       As a general rule, travel to and from work is private use of a vehicle; and
3       There are only limited circumstances where an employee’s private use of a car is exempt  from FBT.

For more information, Please log on the ATO’s Car Fringe Benefits webpage to get more details

Blog by C. Yang 
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