Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
Just a few quick questions about FBT on company cars.
1. Assume a person is a director of a company but is not an employee of the company, but the person drives the company's car. Everything in the ATO website keeps referring to an "employee" so, if a director is not an "employee", does that mean the FBT issues do not apply?
2. If FBT issues DO apply, what is the simplest way to deal with the issue if a log book has been kept and the log book shows approx 90% business use (ie 10% private use) on less than 10,000 km per year. For example, can 10% of the car running costs not be claimed as a deduction (paid instead by the director personally) or is there still a need to register for FBT, record it and pay in the BAS statements etc?
We'd like the easiest possible way to handle the issue properly.