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 year of tax commencing 1 April 1996?
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FOI status:may be releasedFOI number: I 1015059
|This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).|
|Engine capacity||Rate per kilometre|
|0 - 2500 cc||31 cents|
|Over 2500 cc||37 cents|
|Motor cycles||9 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 will give 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 motor car, station wagon, panel van, utility truck or similar vehicle, designed to carry a load of less than one tonne; or
- 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 methods that may be used to value the residual benefit arising from an employee's use of an employer's motor vehicle other than a car. For example, MT 2034 applies to the calculation of the value of a benefit arising from the use of a motor cycle or a vehicle designed to carry a load of one tonne or more.
5. The cents per kilometre rates set out in this Determination are those that applied for the year commencing 1 April 1995, modified to reflect the movement in the Consumer Price Index. (The rates that applied for the year commencing 1 April 1995 are set out in Taxation Determination TD 95/19.)
Commissioner of Taxation
5 June 1996
NO FBT 154; NAT 95/2688-9
private use of motor vehicles other than cars