FBT for employees

[#1]

Hi All,

I have a question regarding FBT.

Our company provide cars for private usage to employees. As an example:

Employee 1 - use the car for private purpose went on extended leave (120 days) during FBT year. Employee left the car to Employee 2 to use for private purpose as well.

Question is assuming the FBT value is above $5,000, is the FBT Reportable on employee 2 PAYG as he only use this car only. Car is used by Employee 1 when he came back from leave. Employee 2 has not been provided with car for private purpose since then.

Appreciate the assistance.

Thank you.

Az

[#2 · Accepted solution]

I found this on ATO's site:

If an employee uses a pooled or shared car resulting in a fringe benefit – it is an excluded benefit. This means that you: do not have to report the fringe benefit on your employee's payment summary. do have to pay FBT on the taxable value of the fringe benefit you provided

This site might also be useful - Use of car by two or more employees

If these don't help, you might be better off seeking professional advice specific to your situation.