The following article applies to those who use motor vehicles in the course of running their businesses.
FBT Motor Vehicle Exemption – Updated Guidelines
For many years, many entities have enjoyed a FBT exemption where:
- the vehicle is a panel van, utility (ute) or other commercial vehicle (that is, one not designed principally to carry passengers)
- the employee’s private use of such a vehicle is limited to
- travel between home and work
- travel that is incidental to travel in the course of duties of employment
- non-work related use that is minor, infrequent and irregular (eg: occasional use of the vehicle to remove domestic rubbish).
These have been a grey area and have caused confusion to business owners when attempting to work out whether their vehicles are exempt or not.
The ATO has recently released new guidelines to reduce confusion and provide more certainty for employers when applying the FBT exemptions. The guidance notes relate to the clarification on the definition of an employee’s (and/or their associate’s) private use where it is ‘minor, infrequent and irregular’ for FBT purposes.
If you believe you fall under this category and would like more clarity, contact us for more information and we can talk you through this over the phone, or via email.
2018 FBT Return Lodgement
The FBT year has ended 31 March 2018. For those who require a return lodgement, your FBT Return is due by 21 May 2018. Please contact us for instructions on the lodgement of the return.
Motor Vehicle Odometer Readings
For those who provide motor vehicle benefits to employees and/or associates, it is important that you keep records of your vehicle’s odometer reading as at 31 March 2018.