Use of property - residual benefits

Legislative reference: subsections 47(3)External Link, 47(4)External Link and 47(4A)External Link of the FBTAA.

Where plant or equipment located on your business premises is used wholly or principally in connection with the operation of that business, any private use of that plant by an employee on those premises is an exempt benefit – for example, private telephone calls. This exemption applies regardless of whether the plant or equipment is used on a working or a non-working day.

The limited use of equipment off your business premises qualifies for exemption provided the equipment is ordinarily located on those premises or at your worksite for use in connection with business operations. This exemption would extend, for example, to business equipment that an employee borrows to use overnight or at weekends. A power tool or personal computer taken home in these circumstances would give rise to an exempt benefit – however, the exemption doesn't extend to use of one of your motor vehicles.

The use by employees of amenities, such as tea making or coffee making facilities, located on the business premises is also exempt from FBT.

    Last modified: 08 Jan 2014QC 17820