FBT and Work Vehicles

Most business owners are aware that if a car is provided to an employee for the private use of the employee, Fringe Benefits Tax (“FBT”) is usually payable.  For this purpose, “private use” means that the vehicle is applied to the private use by the employee or their associate.  Also, private use occurs where the car is taken to be available for the private use of the employee or an associate of the employee.  On each day such private use occurs, FBT is payable.  The amount of FBT payable depends on factors that include whether the statutory formula method or operating cost (“log-book”) method has been chosen to calculate the FBT taxable value. Read more …