Cars on the ATO’s ‘FBT radar’
This financial year, the ATO will be conducting a campaign to make sure employers who have purchased a car during the 2011 and/or 2012 fringe benefits tax (FBT) year are aware that they may have FBT obligations.
Note: An FBT year runs from 1 April until 31 March.
Data has been obtained from various motor vehicle registering bodies to identify employers who have purchased a business registered vehicle but have not registered for FBT.
As a result, the ATO will be writing to about 5,000 employers who fall into this category, to tell them about car fringe benefits and what they need to do to comply with FBT obligations.
The ATO will particularly highlight that:
- if a car is garaged at home, it is taken to be available for private use;
- as a general rule, travel to and from work is private use of a vehicle; and
- there are only limited circumstances where an employee’s private use of a car is exempt from FBT.