FAQs

Yes. FBT applies to the private purpose usage of a motor vehicle whether under finance or wholly-owned by the business.

Fringe Benefits Tax is paid by the employer/business owner. Sole traders are not subject to FBT.

FBT is calculated on the grossed-up value of the benefit received by an employee at the FBT rate of 47%.

Fringe Benefits Tax, FBT, is a tax on non-salary, non-cash benefits provided to employees by employers. This includes items such as the use of company vehicles for private purposes, entertainment, gym memberships and other benefits. The tax is calculated on the grossed-up value of the benefit.

Where a vehicle is not used for private purposes, it may not be subject to FBT. This may include service type vehicles such as utes and vans which are kept at the business premises and used by employees to/from that location and not taken home or for private use after work. All vehicle use is subject to ATO guidelines for FBT.

Where an employee sacrifices salary for a Novated Lease it may not be subject to FBT. Employers and employees should check ATO guidelines to clarify if their vehicle is exempt from FBT with their specific Novated Lease.

In general terms, all types of vehicles owned or under finance by a business and provided for personal purposes to an employee can be subject to FBT. This includes sedans, executive cars, SUVs, utes and other models. There are exemptions for EVs subject to the vehicle meeting specific conditions as set out by the ATO.

No. Under ATO guidelines, sole traders are not subject to benefits provide to themselves. This would include the use of their vehicle for private purposes.

FBT is calculated on an annual basis for the period 1 April to 31 March. It is self-assessed by business operators based on their own records. A FBT return must be submitted to the ATO and the amount payable finalised in the timeframe set.

Yes. FBT is a tax-deductible business expense. GST credits on the benefit may also be claimed.