• Statutory formula method examples

    Example: Calculation using the old statutory rates

    An employer purchases a car for $30,000 (including GST) on 1 August 2009; however, it was only available for private use by the employee for 182 days from 1 October 2009 and:

    • the car's base value is $30,000
    • from 1 August 2009 to 31 March 2010 the car travelled 18,000 kilometres (the annualised kilometres for the full 2009-10 FBT year would be 27,037 (18,000/243 x 365), so the relevant statutory percentage is 11%)
    • the employee pays fuel costs of $1,000 and provides the employer with the necessary declaration.
     

    The taxable value of the car fringe benefit provided during the year would be:

    Taxable value = (A x B x C) - E
                                         D

    Where:

    • A = the base value of the car
    • B = the statutory percentage
    • C = the number of days in the FBT year when the car was used or available for private use of employees
    • D = the number of days in the FBT year (use 366 if a leap year)
    • E = the employee contribution.
     

    Taxable value 

    =

    ($30,000 x 11% x 182) - $1,000 = $645.47
                   365

    Example: Annualised kilometres

    From the period 1 April 2009 to 31 March 2010 an employer provides a car to two employees for private use and:

    • the car's base value is $30,000
    • the car is available to employee one for 183 days and employee two for 182 days
    • employee one travels 20,000 kilometres and employee two travels 7,000 kilometres (the annualised kilometres are 27,000, so the relevant statutory percentage is 11%).
     

    Taxable value = (30,000 x 11% x 365/365) = $3,300

      Last modified: 08 May 2012QC 17818