What is a Car Fringe Benefit?

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What is a Car Fringe Benefit?

A car fringe benefit commonly arises when an employer makes a car they own or lease available for the private use of an employee. If you conduct your business through a company or trust, you may be an employee of the company or a trust.

A car is made available for private use by an employee on any day the car:

  • is used for private purposes by the employee or associate
  • is not at your premises, and the employee is permitted to use it for private purposes
  • is garaged at their place of residence, regardless of whether they have permission to use it privately.


Calculating the Taxable Value

You can calculate the taxable value of a car fringe benefit using either a statutory formula or operating cost method.


Questions?

Car related Fringe Benefits can be a taxation minefield. We strongly suggest that if you have questions regarding your business vehicle usage please contact us on (03) 5911 7000 or send us an email.

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