Section 8 of the FBTAA defines exempt car benefits. The private use of a taxi, panel van, utility or other commercial vehicle (that is, one not designed principally to carry passengers) will be an exempt benefit if the private use is limited to:
- travel between home and work
- travel that is incidental to travel in the course of performing employment-related duties
- non-work-related use that is minor, infrequent and irregular (for example, occasional use of the vehicle to remove domestic rubbish).
If the private use of these cars exceeds the limits (for example, if a vehicle referred to in section 8 of the FBTAA was used regularly on weekends to go to the local shops), all private travel (including home to work and work to home travel) will be subject to FBT in accordance with the car fringe benefit provisions.
For a list of vehicles that are eligible for this exemption, refer to Fringe benefits tax - exempt motor vehicles.
This listing was previously available as appendices to Miscellaneous Taxation Ruling MT 2024. The entire ruling should be read to help correctly interpret the listing.
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