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  • Fringe benefits tax – pooled or shared car reporting exclusion 

    In some circumstances you – the employer – do not have to report the use of a pooled or shared car as a fringe benefit.

    For example, if an employee uses a pooled or shared car resulting in a fringe benefit – it is an excluded benefit. This means that you:

    • do not have to report the fringe benefit on your employee's payment summary
    • do have to pay FBT on the taxable value of the fringe benefit you provided.

    Reporting exclusion conditions

    For the benefit to be an excluded benefit:

    • it must be either
      • a car fringe benefit or
      • an exempt car benefit for more than one employee
       
    • you must direct each of these employees to use the car or consent to each employee using the car.

    In these circumstances, the car is a pooled or shared car during the FBT year and you do not have to report your employees' use of that car.

    You must check whether this reporting exclusion applies each FBT year as the use of the car may have varied from the previous year.

    See also:

    Exempt car benefits

    Providing a car is an exempt car benefit if both of the following apply:

    • you make a car you own or lease available for an employee's private use (or we treat it as being available for their private use)
    • an FBT exemption applies.

    The exemptions from FBT include circumstances where:

    • using the car is an exempt minor benefit
    • the employee's duties relate to a public hospital unless the amount of benefit provided to an individual employee exceeds the relevant threshold
    • using the car is compassionate travel.

    See also:

    Example 1
    Ted owns a ute that is designed to carry a load of more than one tonne. His employees, Gloria and Annabelle, use the ute for private purposes on alternate weekends.

    Cars do not include motor vehicles designed to carry a load of one tonne or more.

    The benefit is not an excluded benefit because the ute is not a car. Being a car is a condition of the reporting exclusion. So, the reporting exclusion does not apply.

    End of example

     

    Example 2
    Nalina, an employer, owns a car. She has two employees, Con and Kellie. Con uses the car to travel to and from work and for other private purposes, so Nalina provides Con with car fringe benefits.

    Kellie uses the same car during the FBT year. She uses the car for private purposes on one day only. On that day, she travels from work to home for a family emergency and then returns to work. Kellie's use of the car is:

    • exempt from FBT under the minor benefits exemption
    • an exempt car benefit.

    In this example, the car is a pooled or shared car during the FBT year and Nalina does not have to report her employees' use of that car as the FBT reporting exclusion applies.

    End of example

     

    Example 3
    Cara, an employer, owns a car. She has three employees: Diana, Ann and Jody.

    Diana uses the car:

    • to travel to and from work on weekdays
    • on weekends for private trips.

    During business hours:

    • the car is parked at Cara's business premises and the other employees use it to visit business clients and for other business purposes
    • Cara does not allow the other employees to use the car for private purposes and she enforces this restriction.

    Cara provides Diana with a car fringe benefit because Diana uses the car for private purposes.

    The other employees' use of the car is only for business purposes and Cara provides no car fringe benefits or exempt car benefits for these other employees.

    The car is not a pooled or shared car because, during the year, Cara did not provide two employees with either a car fringe benefit or an exempt car benefit. Diana's use of the car is not an excluded benefit and the FBT reporting exclusion does not apply.

    End of example
      Last modified: 29 Nov 2016QC 22926