Vehicle purchased in company used on 20% for company, therefore FBT return required. If the vehicle is also used personally by a directors spouse, for deductible work purposes through a separate PAYG Summary (not related to company), can this work percentage reduce the taxable value, as it is otherwise deductible?
Hi @Florence123,
No, the director's spouse's work-related use can't reduce the company's FBT taxable value. FBT applies to the benefit the company provides to the employee (or their associate), regardless of how the recipient uses it.
The company calculates FBT based on the vehicle's availability for private use by the director and their associates (including spouse). The spouse's separate work purposes don't change this - they're still receiving a benefit from the company.
However, the spouse may be able to claim work-related car expenses in their personal tax return for any costs they personally incur while using the vehicle for their own work purposes.
Check out our guide on Cars and FBT for more details.
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