Dear ATO officer & everyone,
I am stuck with calculating car FBT amounts.
Background: I choose to use the Statutory Formula Method for calculating the FBT.
Problem: the FBT guide for employers is explaining how to work out the taxable value of the car benefit and it seems like it impressed me to 'combine' all kind of cost base to work out the taxable value and then apply type 1 rate to work out the FBT amount even though it doesn't say so. That is ok if the car is not a luxury car. However, it mentioned that LCT (Luxury Car Tax) should be included as taxable value for FBT purpose. Here is my question, if an employer paid LCT when purchasing a car, could I calculate the FBT amount of LCT separately by applying the Type 2 rate 1.8868?
Extension question: If I use the operating cost method, could I separately calculate each car benefit of one car? For example, I use the Type 2 rate 1.8868 to work out the car's rego/interest FBT amount and use the Type 1 rate 2.0802 to work out the car's fuel/insurance FBT amount?
Kindly regards,
Emily
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