The Fringe Benefit Tax traps

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The Fringe Benefit Tax traps. 

In late 2022, the Government introduced a concession that enables employers to provide some electric vehicles to employees without incurring the 47% fringe benefits tax (FBT) on private use.  

The exemption applies to the use of electric cars, hydrogen fuel cell electric cars or plug-in hybrid electric cars if:

  • The value of the car is below the luxury car tax (LCT) threshold for fuel efficient vehicles ($89,332 for 2023-24 financial year) at the time it is first sold in a retail sale; and

  • The car is both first held and used on or after 1 July 2022.


If your business is planning on acquiring an electric vehicle, be aware that from 31 March 2025, the FBT exemption will no longer apply to plug-in hybrid electric vehicles unless the vehicle met the conditions for the exemption before this date and there is already a binding agreement to continue to use the vehicle privately after this date.  

FBT
Downloadable
Resources

FBT Questionnaire FBT Questionnaire
FBT Odometer Reading FBT Odometer Reading
FBT Entertainment Schedule FBT Entertainment Schedule
FBT Motor Vehicle Schedule FBT Motor Vehicle Schedule
FBT Expense Benefits FBT Expense Benefits

The problem areas 



Other FBT problem areas



Helping you meet your FBT obligations.


GET IN TOUCH FOR YOUR FBT RETURN QUOTE AND PREPARATION GET IN TOUCH FOR YOUR FBT RETURN QUOTE AND PREPARATION


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