Is your Motor Vehicle exempt from FBT?

March 14, 2022

Is your Motor Vehicle exempt from FBT?

In summary all vehicles designed to carry a load of more than one tonne and fewer than nine passengers are eligible for FBT exemption.  Below are some more specific examples of potential exempt vehicles:


Panel Van / Van:  Solid rigid body without rear side windows and only has seating in the front for 2-3 passengers.  Principally designed for a load not  passengers.


Single Cab Ute: Seating for 2-3 passengers in the cab, with a larger tray principally designed to carry a load.


Dual Cab Ute:  Need to be principally designed to carry a load and not passengers.  The model’s tare weight for the load needs to be higher than the weight for passengers. Australian Design rules say a passenger weighs 68kgs. (I don’t know many men who weigh this much?)

 

4X4 Vehicles:  Designed to carry more than one tonne, or more than eight passengers.


Please note that for exemption to apply, these vehicles can only have minor and infrequent use by your employees.  The ATO suggests that this means your employee travelS no more than 1,000km per annum for private use. 


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