ARTICLE · 20 FEBRUARY 2022

FBT and car fringe benefits

Moore Australia

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The ATO routinely collects motor vehicle information to check that businesses are meeting their FBT obligations.

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With the Fringe Benefits Tax (FBT) year ending on 31 March 2022, here are a few issues in relation to car fringe benefits to look out for during the 2021-2022 FBT year.

Cars

The Australian Taxation Office (ATO) routinely collect motor vehicle information from government agencies to determine whether businesses meet their FBT obligations. Last year, the ATO announced they were collecting and reviewing information relating to vehicles for the period 1 July 2019 to 30 June 2022 and expect to review the data of 1.5 million individuals per financial year reviewed.

As always, it is important to consider whether the vehicle you own is a ‘car' as defined under the FBT Act. In practice, we have seen numerous instances where the FBT exemption available for certain vehicles is used incorrectly.

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