You have to pay fringe benefit tax (FBT) if your business makes a vehicle available for employees, their associated persons and shareholder-employees to use privately – even if they don’t actually use it.
The vehicle is exempt from FBT during any period when it is not available to be used for at least 24 hours, such as if it has broken down or is being repaired.
Sole traders and partners in a partnership do not pay FBT on business vehicles they use. Instead they make income tax and GST adjustments for private use.
FBT does not apply to a vehicle if it meets all of the following conditions:
If a vehicle above the gross laden weight is provided to an employee for private use this may need to be treated as an unclassified benefit.
You should regularly check logbooks, petrol receipts etc to make sure employees are using the vehicle appropriately. You should also keep a record of these checks.
If an employee uses a vehicle to attend an emergency call, FBT will not apply for that whole day when the employee travels from their home, and in the course of their employment provides:
The visit must take place between 6pm and 6am during the work week, or at any time on a Saturday, Sunday or statutory public holiday. There are no time restrictions in the case of health or safety of a person.
If an employee regularly travels with a vehicle, FBT may not apply when:
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