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  • Making a car available to employees for private use

    If your not-for-profit owns or leases a car and makes it available to employees, volunteers or their associates for private use, you may have a fringe benefit tax (FBT) liability.

    A car is considered available for private use if staff:

    • Use it, or are allowed to use it, for private purposes. For example, when they use the car to travel between work and home.
    • Store the car at their home – even if they do not have permission from you to use the car privately.

    For FBT purposes, a car is considered any of the following:

    • 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 your organisation owns or leases cars, you will need to keep appropriate records for car fringe benefits you provide.

    Depending on your organisation, you may also be eligible to receive FBT concessions.

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    Last modified: 24 Sep 2019QC 60171