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PaulaSmith(Newbie)Newbie
9 Jan 2024

The novated lease provider is saying that the ATO bought in a rule in October 2023 that doesn't allow me as a Qld teacher to any longer have a novated lease to purchase a 1 tonne as this is not a car and is classified as a commercial vehicle and not for private use. The only information I can find is from 2022 on this forum - so may not have this new rule information included.

Can anyone advise of this - one provider has told me it was 'their' rule, another provider has said its an ATO rule. I'm confused!

I just want to buy a ute through a novated lease. Anyone know what I could do? Can I speak to someone about this?? Will this 'rule' be around long???

Thanks

Paula

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YEP(Devotee)Devotee
11 Jan 2024

Its not a new rule, its been around for many years and its in the FBT legislation.

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 47 (6)


Some providers may have additional or different rules, but on this specific issue all providers must abide by the legislation they have no option.






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Most helpful reply

YEP(Devotee)Devotee
11 Jan 2024

Its not a new rule, its been around for many years and its in the FBT legislation.

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 47 (6)


Some providers may have additional or different rules, but on this specific issue all providers must abide by the legislation they have no option.






PaulaSmith(Newbie)Newbie
13 Jan 2024

Hi YEP

Thanks for that clarification. Do you know anything about the 'residual fringe benefit ' - might I be able to purchase the ute using this?

Thank you

YEP(Devotee)Devotee
14 Jan 2024

No.


A residual benefit arises where an employer provides a service or the use of property to an employee (or assocaite) ...... for example a vehicle that is not a car such as a 1ton utility that are given to employees as extra pay fall into this category.


All of this means the property is owned by the employer and not the employee.


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Why can't I novated lease a 1 tonne drop side ute? Has the ATO recently bought in a new rule? | ATO Community