Practical Compliance Guideline PCG 2018/3 sets out when an employer does not need to keep records to demonstrate that private use of a business vehicle by an employee is minor, infrequent and irregular in order to claim an FBT exemption. The ATO says an employer can access the FBT car-related exemptions when:
- Employees are allowed limited private use of an eligible vehicle that adds no more than two kilometres to their trip between home and work
- The car does not exceed 1,000 kilometres in total for the FBT year (which is 1 April – 31 March), and where any single return journey does not exceed 200 kilometers
- The car is provided to the employee to do their job and it is not part of their salary package arrangement
- The value of the vehicle is less than the luxury car tax threshold
Published on October 10, 2018 by Progue
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