Fringe Benefit Tax (FBT) has been put in place to tax the benefits provided to employees by employers that supplement or replace salary or wages. FBT is calculated annually, based on the FBT year of 1 April to 31 March.
For motor vehicle benefits there are two methods of calculating Fringe Benefit Tax:
Statutory Formula Method:
The taxable value of the car fringe benefit is a percentage of the car's value. For more information please contact us.
Operating Cost Method:
The taxable value of the car fringe benefit is a percentage of the total costs of operating the car during the FBT year. The percentage varies with the extent of actual private use. The lower the actual private use, the lower the taxable value. You will need to maintain a log book over a consecutive twelve week period to determine the private use percentage.
Statutory Method calculation:
The statutory method uses percentages, calculated by the Australian tax office, which are applicable to the kilometres travelled in the FBT year.
For more detail and information regarding Fringe Benefits Tax please contact us.
Fridge Benefits Tax
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