• A – Cars using the statutory formula

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    When you complete the information at item A, do not show the actual value of the cars in the 'Gross taxable value (a)' column.

    Employee contributions include:

    • amounts the employee pays directly to you for using a car
    • any car operating costs (for example, fuel) the employee paid.

    Use GST-inclusive amounts where appropriate.

    If, at the beginning of the FBT year, you have already owned or leased the car for four years, you can reduce its base value by one-third. The reduction applies only once for a particular car – you then use the reduced base value for subsequent years.

    Determining the statutory percentage

    A flat statutory rate of 20% applies (subject to transitional rules), regardless of the distance travelled, to all car fringe benefits you provide after 7.30pm AEST on 10 May 2011 (except where there is a pre-existing commitment in place to provide a car).

    The statutory percentages for car fringe benefits provided before 7.30pm AEST on 10 May 2011, or where you have a pre-existing commitment in place to provide the car after this time, are as follows:

    Total kilometres travelled during the FBT year Statutory percentage

    Less than 15,000

    26

    15,000 to 24,999

    20

    25,000 to 40,000

    11

    Over 40,000

    7

     

    You can continue to use these statutory rates for all pre-existing commitments unless there is a change to that commitment.

    If a car was not held for the whole FBT year, you need to work out how many kilometres it would have travelled if you had held it for the whole year, to establish the appropriate statutory fraction – for example, if you acquire a car halfway through the FBT year and it travels 12,000 kilometres in six months, the distance it travels in a year is 24,000 kilometres.

    Example: Non-transitional arrangement – calculate car fringe benefits using the statutory formula

    An employer has two cars with a base value of $30,000 each. Both cars have travelled 20,000 kilometres in the FBT year and have been available to the employees for private use for the whole year. The two employees who use the cars have made contributions of $1,000 each for fuel during the year.

    The calculation for each car is as follows:

    ($30,000 x 20%) - $1,000
    = $5,000

    The employer shows this at item 23 as follows:

    Example of employer figures at item 23

    End of example

    Transitional arrangements and rates

    The move to one statutory rate of 20% will be phased in over four years. There will be transitional arrangements that apply to any new commitments entered into from 10 May 2011 to 31 March 2015. Where there is a change to a pre-existing commitment, these transitional arrangements will also apply. The following statutory rates should be used:

    Total kms
    travelled during
    FBT year

    Statutory percentage

    From
    10 May 2011

    From
    1 Apr 2012

    From
    1 Apr 2013

    From
    1 Apr 2014

    Less than 15,000

    20

    20

    20

    20

    15,000 to 24,999

    20

    20

    20

    20

    25,000 to 40,000

    14

    17

    20

    20

    Over 40,000

    10

    13

    17

    20

     

    Example: Transitional arrangement – calculate car fringe benefits using the statutory formula

    Under an arrangement that did not involve a pre-existing commitment, on 12 June 2012 an employer agreed to provide an employee with a car fringe benefit. The car was delivered on 1 July 2012 and was available to the employee for private use from that date.

    From 1 July 2012 to 31 March 2013, the car travelled 22,000 kilometres.

    The annualised kilometres are 22,000 x 365/274 = 29,306.

    The base value of the car is $32,000.

    The employee did not make any contributions.

    The calculation for the car is ($32,000 x 17%) x 274/365 = $4,083.

    The employer shows this at item 23 as follows:

    Example of employer entry at item 23

    End of example
    Last modified: 23 Oct 2013QC 27133