Providing a car for employees? Find out if you need to pay FBT

The Australian Taxation Office (ATO) is launching a campaign to help employers work out whether they are providing a car fringe benefit. The aim of the ATO campaign is to ensure employers are aware of and feel supported in meeting their FBT obligations.

According to the ATO’s guidelines, you make a car available for private use by an employee on any day that the car is either:

• Actually used for private purposes by an employee.
• Available for the private use of the employee.

A car is considered available for your employee’s private use when it is:

• Used to travel to and from work.
• Not at your premises and they are allowed to use it for private purposes.
• Garaged at their home – regardless of whether they have permission to use it for private purposes.

For FBT purposes, a ‘car’ includes:

• A sedan or station wagon.
• Any other goods-carrying vehicle with a carrying capacity of less than one tonne, such as a panel van or utility (including four-wheel drive vehicles).
• Any other passenger-carrying vehicle designed to carry fewer than nine passengers.

If you’re not sure if you’re providing a car fringe benefit, the ATO is holding a series of virtual introductory sessions that can help you to understand your obligations. You can register by selecting a date and time that suits you.

Next steps:

• Register for an Employer: Introduction to car fringe benefits session
• Registering for FBT

Find out about:

• Car fringe benefits
• Fringe benefits tax – exempt motor vehicles
• Reporting, lodging and paying FBT