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For a Car fringe benefit, for the expenses related to car:

petrol and fuel expense which costs $2900 (GST exclusive) and the employee reimbursed the company with $400. To calculate the taxable value of the car fringe benefit, and if the employee is using operating cost method, how much did the employer have to include in the petrol and oil expense?

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Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @ephrime,

 

Thanks for your question!

 

We actually have a Fringe benefits tax - car calculator that you can use for this purpose. It will allow you to work out the taxable value of a car fringe benefit using either of the two methods.

 

When you do your calculation, you would include GST on the actual costs of fuel incurred. You would also report the $400 at the "employee contribution" field and input the appropriate percentage attributed to private use.

 

As an example:

 

Fuel: $3,190

Private use percentage: 10%

Employee contribution: $400

 

This has given the following result:

 

Gross taxable value (a): $319

Employee contribution (b): $400

Taxable value of the benefits (a) - (b): $0

 

Your figures will likely be different, so please feel free to try the calculator out for yourself and see what it comes up with.

 

If you want to find out more about Car fringe benefits, you can refer to our Fringe Benefits guide for employers.

 

Hope this helps,

 

Rachael B.

1 REPLY 1

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @ephrime,

 

Thanks for your question!

 

We actually have a Fringe benefits tax - car calculator that you can use for this purpose. It will allow you to work out the taxable value of a car fringe benefit using either of the two methods.

 

When you do your calculation, you would include GST on the actual costs of fuel incurred. You would also report the $400 at the "employee contribution" field and input the appropriate percentage attributed to private use.

 

As an example:

 

Fuel: $3,190

Private use percentage: 10%

Employee contribution: $400

 

This has given the following result:

 

Gross taxable value (a): $319

Employee contribution (b): $400

Taxable value of the benefits (a) - (b): $0

 

Your figures will likely be different, so please feel free to try the calculator out for yourself and see what it comes up with.

 

If you want to find out more about Car fringe benefits, you can refer to our Fringe Benefits guide for employers.

 

Hope this helps,

 

Rachael B.