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Novated Lease FBT

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Hi, after suspending mu Novated Lease payments for 6 months due to being stood down without pay, I have now been made redundant. As a result I have had to terminate my Lease, during the reconciliation process my Lease provider has informed me I owe the ATO 6 months worth of FBT which amounts to over $5000. 

Can you advise if this is accurate?  I haven't been paid, therefore no pre or post tax benefits. How can I be made to pay FBT for a benefit I'm not recieving.. Defeats the purpose of having the Lease payments suspended.

This is really upsetting and I cannot believe it could be the case.

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Devotee

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FBT will accrue if you had use of the car during that time.  You may be able to reduce the amount by providing details of any period the car was not available to you, any running costs you have paid and/or by making a contribution to your employer.  Speak to the lease provider to see if this is possible. 

 

If the lease has not already been terminated it may also be beneficial to pay all or some of the suspended payments before the lease is discharged.

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Most helpful response

Devotee

Replies 0

FBT will accrue if you had use of the car during that time.  You may be able to reduce the amount by providing details of any period the car was not available to you, any running costs you have paid and/or by making a contribution to your employer.  Speak to the lease provider to see if this is possible. 

 

If the lease has not already been terminated it may also be beneficial to pay all or some of the suspended payments before the lease is discharged.