Is fringe benefits tax payable on commericals vehicles?

Answer 1

FBT in Australia may be payable on 'commercial vehicles' if there is actual or deemed private use that is not exempted or, minor, infrequent and irregular. The term 'commercial vehicle' is assumed to mean something like a ute, single cab, twin cab, van, etc. Private commuting between home and a regular place of work in most vehicles of this type is deemed by the ATO to be exempt from FBT, provided that any other private use is minor, infrequent and irregular. If other private use is more than this, then not only will these journeys be subject to FBT, but the commuting journeys will also be treated as being subject to FBT. The FBT will be imposed as either as a car fringe benefit or residual fringe benefit depending upon whether the vehicle is classified as a car (by definition) or not. Vehicles with a payload of 1 tonne or more, or licenced to carry 9 passengers or more are not cars for FBT purposes, hence they fall under the residual benefit rules. In any event, note that any vehicle may not subject to FBT on commuting if it is used to carry heavy and/or bulky equipment for use at a worksite each day, or the worksite constantly changes (so that the employee is virtually itinerant). A logbook should be kept for a minimum period of 12 weeks to substantiate the business and/or private use.