• Article Rating
  •  Average 3.5 out of 5
  • Providing a work car to your employees?

    455_fbt-car_a.png

    20 April 2021

    Providing a work car to your employees can be a great incentive.

    If you provide a car to an employee for their private use, you may need to pay fringe benefits tax (FBT).

    You make a car available for private use by an employee on any day that the car is either:

    • actually used for private purposes by the employee, or
    • available for the private use of the employee.

    A car is considered available for your employee's private use when it is:

    • used to travel to and from work
    • not at your premises and they are allowed to use it for private purposes
    • garaged at their home - regardless of whether they have permission to use it for private purposes.

    For FBT purposes, a 'car' includes:

    • a sedan or station wagon
    • any other goods-carrying vehicle with a carrying capacity of less than one tonne, such as a panel van or utility (including four-wheel drive vehicles)
    • any other passenger-carrying vehicle designed to carry fewer than nine passengers.

    If you're not sure if you're providing a car fringe benefit, our virtual introductory sessions can help.

    You can register by selecting a date and time that suits you.

    Next steps:

    Find out about:

  • Rate this article
  •  Average 3.5 out of 5