• ### 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