Hello, we have just been awarded car allowances at work, which is coming through as FBT.
Now if I don't spend that money on a lease to buy a car and pocket the cash to supplement my income, am I right in thinking that amount just gets added to my taxable income for the year?
Is the smarter thing to do is actually use that money for the car so I am taking advantage of the FBT?
Thanks
Hi @d007,
You're right on the money!
When you lodge your tax return we'll add your allowance to your income to work out how much tax you need to pay.
Remember the money is given to you to help cover your expenses. It's your money!
Check out the information on our website where it talks about travel allowances.
Hi @d007,
You're right on the money!
When you lodge your tax return we'll add your allowance to your income to work out how much tax you need to pay.
Remember the money is given to you to help cover your expenses. It's your money!
Check out the information on our website where it talks about travel allowances.
Thank you @CaroATO :)
Am i right in thinking that if I use that money for the stated car allowance I get access to all of that amount pre-tax? i.e if its a 15k car allowance and I use it for a lease or car loan I can use all the 15k without it being taxed?
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