Author: JayATO(Community Support)Community Support 14 May 2026
Hi @andngn,
You're correct that private use of a shared or pooled car by multiple employees is excluded from reportable fringe benefits. The key issue is whether the car is genuinely used as a pool car or if it's effectively made available to one specific employee for private use.
For Scenario 1, where Employee A has private use of the car from 1 April to 31 December and the car is then parked at company premises for business use only, this is not a shared or pool car arrangement during the 9-month period. The car was made available to Employee A for private use during this time. This creates a car fringe benefit that must be included as a reportable fringe benefits amount for Employee A on their payment summary.
For Scenario 2, where Employee A has private use from 1 April to 31 December and other employees also use the car privately and keep it at their residences during the remaining period, you now have multiple employees receiving private use. Each employee who receives private use of the car would need to have their portion of the car fringe benefit calculated and reported. If an employee's total taxable value of fringe benefits exceeds $2,000 in the FBT year (after grossing up), it becomes a reportable fringe benefits amount on their payment summary.
The critical distinction is that a pool car exemption applies when a car is genuinely shared for business purposes and any private use is minimal or incidental. When a car is made available to an employee for extended private use, even if it's shared with others at different times, this creates a car fringe benefit for each employee who has private use.
You'll need to calculate the taxable value of the car fringe benefit for each employee based on their period of use. You can use the statutory formula method or the operating cost method to work out the taxable value. Once you've calculated the taxable value for each employee, you'll need to gross it up to determine if it exceeds the $2,000 reporting threshold. You can use the FBT car calculator to help with your calculations and check our guidance on how FBT applies to cars for more details on calculating and reporting requirements.
Author: andngn(Newbie)Newbie 14 May 2026
Hi Jay,
Agreed on your answer for Scenario 1. Thank you
Regarding Scenario 2, the answer seems different from the ATO example about multiple employees having private use of a pooled/shared car: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/fbt-registration-lodgment-payment-and-reporting/reportable-fringe-benefits/reporting-exclusion-for-pooled-or-shared-cars.
That example appears to show the same situation, where the reporting exemption still applies.
If the two scenarios are in fact the same, the key point I want to clarify is:
If even one day during the FBT year another employee genuinely uses the car for private purposes with the employer’s direction and consent, does that mean the car is treated as a pooled/shared car for the whole FBT year, and therefore the employer does not need to report any employee’s use of the car?
Author: JayATO(Community Support)Community Support 19 May 2026
Hi @andngn,
No, one (or occasional) use by another employee doesn’t make it a pooled/shared car for the whole year.
The deciding factor is whether the car is basically a shared work vehicle, or allocated to employees for private use over time.
Having more than one employee use the car doesn’t automatically make it a pooled/shared car. What matters is the overall use pattern.
To qualify as a pool car, it generally needs to be:
- genuinely shared for work purposes, and
- not mainly available to any one employee, with only minor or incidental private use.
In your Scenario 2, even though multiple employees use the car, it still sounds like it’s being assigned to individuals for periods of private use (e.g. kept at home). That points more toward car fringe benefits for each employee, rather than a true pool car.
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