fbpx

Tax News and Updates – April 2016

April 28, 2016

We get many questions from clients asking what types of vehicles are exempt from FBT. Generally, a vehicle will be exempt from FBT if any of the following applies: 

  1. The vehicle is designed to carry a load greater than one tonne
  2. The vehicle is designed to carry nine or more occupants
  3. The vehicle is a single cab ute, taxi or panel van and the employee’s private use of the vehicle is limited to work-related travel (which includes travel between home and work) and other private use by the employee or their associates that is minor, infrequent and irregular.
  4. The vehicle is “goods-carrying vehicle” and therefore not designed for the principal purpose of carrying passengers (some dual cab utes and 4WDs) and the employee’s private use of the vehicle is limited to work-related travel (which includes travel between home and work) and other private use by the employee or their associates that is minor, infrequent and irregular. 

A vehicle is regarded as a “goods-carrying vehicle” and therefore not principally designed for carrying passengers if the total passenger weight is less than 50% of the carrying capacity of the vehicle for FBT purposes. 

The total passenger weight is determined by multiplying the number of seats by 68 kg.

The carrying capacity of the vehicle for FBT purposes is determined by subtracting the Kerb-side Mass from the Gross Vehicle Mass. 

If you have any questions about whether your current or proposed vehicle is exempt from FBT, please contact our office.

 

Your Link to Growth

A long time vision for us, Your Link to Growth reflects our approach and aspirations to assist our clients, staff and community to reach their goals. We do this through holistic and innovative financial solutions for businesses and individuals. Founded in 2004, we are a well established business based in Canberra and Brisbane.

Learn more about Nexis

Get in touch with Nexis

Talk to our friendly team today about all your tax needs.

Other news

Meet Kevin Magdadaro

Meet Kevin Magdadaro

Meet Kevin Magdadaro, one of our accountants, who started with Nexis in 2022 as part of our Philippines team. Kevin’s role involves preparing financial statements and tax returns for companies, individuals, trusts, and partnerships, as well as bookkeeping...

read more
Meet Michelle Suwignjo

Meet Michelle Suwignjo

Meet Michelle Suwignjo, one of our newest graduate accountants, who started in the Nexis Canberra office in June 2023. Michelle supports the bookkeeping team preparing BAS and IAS, TPAR, STP finalisations, payroll tax, payroll and general bookkeeping tasks. We...

read more