Taxation Determination

TD 2003/6

Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax (FBT) year commencing on 1 April 2003?

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FOI status:

may be released

Preamble
The number, subject heading, date of effect and paragraph 1 of this Taxation Determination are a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and are legally binding on the Commissioner. The remainder of the Determination is administratively binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain how a Determination is legally or administratively binding.

1. The rates to be applied where the cents per kilometre basis is used for the fringe benefits tax year commencing on 1 April 2003 are:

Engine capacity Rate per kilometre
0 - 2500cc 37 cents
Over 2500cc 44 cents
Motor cycles 11 cents.

2. An employee's right to use a car for private purposes constitutes a car fringe benefit under the Fringe Benefits Tax Assessment Act 1986 (FBTAA). Where an employee is entitled to use a motor vehicle other than a car, this gives rise to a residual benefit under that Act. For these purposes, in subsection 136(1) of the FBTAA, 'car' means:


'a motor vehicle (including a vehicle known as a four wheel drive vehicle), being:

(a)
a motor car, station wagon, panel van, utility truck or similar vehicle, designed to carry a load of less than 1 tonne; or
(b)
any other road vehicle designed to carry a load of less than 1 tonne or fewer than 9 passengers;


but does not include a motor cycle or similar vehicle.'

3. Taxation Ruling MT 2034 outlines a number of acceptable methods that may be used to value the benefit of the right to use an employer's motor vehicle other than a car. One method of valuing the benefit is to multiply the number of private kilometres travelled by employees in a vehicle during a year by a cents per kilometre rate. The effect of paragraphs 15 and 16 of MT 2034 is that this method can only be used where there is extensive business use of the vehicle.

4. The cents per kilometre rates set out in this Determination are those that applied for the year commencing on 1 April 2002, reviewed to reflect the movement in the Consumer Price Index. (The rates that applied for the year commencing on 1 April 2002 are set out in Taxation Determination TD 2002/6.)

Date of effect

5. This Determination applies to the FBT year commencing on 1 April 2003

Commissioner of Taxation
9 April 2003

Not previously released in draft form.

References

ATO references:
NO T2000/7530
BO 1038-8982

Previous Rulings/Determinations:
TD 93/59
TD 94/22
TD 95/19
TD 96/26
TD 97/16
TD 98/10
TD 1999/5
TD 2000/20
TD 2001/8
TD 2002/6

ISSN: 1038-8982

Related Rulings/Determinations:

TR 92/1
TR 92/20
TR 97/16
MT 2034

Subject References:
FBT
FBT motor vehicle
FBT motor vehicle definition
FBT taxable value
fringe benefits tax
private use of motor vehicles other than cars
residual fringe benefits

Legislative References:
TAA 1953 Pt IVAAA
FBTAA 1986 136(1)

TD 2003/6 history
  Date: Version: Change:
You are here 9 April 2003 Original ruling  
  11 May 2016 Withdrawn