fbt motor vehicle

Ah, the famous FBT motor vehicle conundrum—because the Australian Tax Office loves to make your company car sound like a financial minefield. Fringe Benefits Tax (FBT) on motor vehicles applies when your employer provides a car for your private use, and it’s calculated based on the vehicle’s value, usage, and a set statutory formula or logbook method.

Key points:

• FBT rate is currently 47%.
• Two valuation methods: statutory formula (based on the car's base value and kilometres travelled) or operating cost/logbook method.
• Private use must be properly documented to avoid nasty surprises.

New or used vehicle values for FBT purposes can be referenced from your purchase price or market value, so check Tradingpost or CarShowroom for realistic figures. For the full gritty details, crack open the ATO's official FBT guide—you’ll need it.