Fringe benefits tax
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This information forms Chapter 7 of Fringe benefits tax - a guide for employers.
Remember, a fringe benefit may be provided by another person on behalf of an employer. It may also be provided to another person on behalf of an employee (for example, a relative).
A car fringe benefit most commonly arises where you (the employer) make a car you 'hold' available for the private use of an employee (or the car is treated as being available). A car you hold generally means a car you own or lease.
The following types of vehicles (including four-wheel drive vehicles) are cars:
You make a car available for private use by an employee on any day that either:
A car is treated as being available for private use by an employee on any day that either:
A car that is garaged at an employee's home is treated as being available for the private use of the employee regardless of whether they have permission to use it for private purposes. Similarly, where the place of employment and residence are the same, the car is taken to be available for the private use of the employee.
As a general rule, travel to and from work is private use of a vehicle.
Where a car is in a workshop for extensive repairs (for example, following a motor vehicle accident) it is not available for private use of the employee. However, a car is considered to be available for private use where it is in the workshop for routine servicing or maintenance.
Private use of a motor vehicle that is not a car may give rise to a residual fringe benefit - for more information, refer to section 18.6 of Residual fringe benefits.
If you hire a car for less than three months, you are not considered to 'hold' the car and it will not result in a car fringe benefit. However, if you make a rental car or taxi available for the private use of an employee, and the car is hired for less than three months, a residual fringe benefit may arise.
Home garaging for certain emergency service cars will not result in a car being treated as available for private use under the 'home garaging rule'. However, if the car is otherwise made available for private use, such as by actual private travel between work and home, a car fringe benefit may arise.
To qualify under the home garaging rule, at the time the emergency vehicle is garaged, it must be:
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