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HOIMA(Enthusiast)Enthusiast
11 Apr 2026

Hi Team,


If a company provides a motor vehicle to a director, the company is generally liable to pay Fringe Benefits Tax (FBT) on its private use. The director uses the vehicle for business purposes, such as attending meetings with clients, as well as for private use.


If the company removes the private use of the vehicle by the director when lodging the quarterly BAS and preparing the year-end financial statements by declaring the business use of the vehicle, does the company still need to pay FBT? or, can the company register for FBT and lodge a NIL FBT return?


Thank you


101 views
2 replies
101 views
2 replies

All replies

JayATO(Community Support)Community Support
13 Apr 2026

Hi @HOIMA,


The company can't avoid FBT by removing or re-classifying the director's private use. If the motor vehicle is available for the director's private use, or the director uses it for private purposes, it's a fringe benefit no matter how the company accounts for it.


The important thing is that FBT is based on the availability and use of the vehicle, not how it's reported in your records. Even a car garaged at the director's home is treated as available for private use regardless of whether they have permission to use it privately.

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FBT on a motor vehcile provided for the director | ATO Community