ATO Interpretative Decision
ATO ID 2003/498
Fringe benefits tax
Car benefit: service of a chauffeurFOI status: may be released
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If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the service of a chauffeur a car benefit as defined in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?
Decision
No. The service of a chauffeur is a residual benefit as defined in subsection 136(1) of the FBTAA and is not a car benefit.
Facts
A company owns and uses a car in its business.
The company allows its employee to travel in the car for business and private purposes.
The employer provides the service of a chauffeur to the employee.
The chauffeur drives the car at the employee's direction for business and private purposes.
Reasons for Decision
Is the service of a chauffeur a car benefit?
The term car benefit, as defined in subsection 136(1) of the FBTAA, 'means a benefit referred to in subsection 7(1)'. A benefit referred to in subsection 7(1) of the FBTAA is the application or availability of the car for private purposes.
The employee is provided with the service of a chauffeur. The chauffeur drives the car at the employee's direction. The service of a chauffeur is not an application of a car to a private use by the employee. The service of a chauffeur is not the availability of a car for the private use of the employee.
The service of a chauffeur is not a benefit referred to in subsection 7(1) of the FBTAA and is not a car benefit as defined in subsection 136(1) of the FBTAA. Accordingly, the car benefit provisions (under Subdivision A of Division 2 of Part III of the FBTAA) do not apply in relation to the service of a chauffeur.
Is the service of a chauffeur a residual benefit?
The service of a chauffeur is a benefit as defined in subsection 136(1) of the FBTAA.
The benefit does not fall within any of the categories of benefits covered by Subdivision A of Divisions 2 to 11 (inclusive) of Part III of the FBTAA, such as car benefits. Accordingly, the benefit is a residual benefit as defined in subsection 136(1) of the FBTAA.
Amendment History
| Date of Amendment | Part | Comment |
|---|---|---|
| 28 July 2017 | All | Minor punctuation and style amendments. |
Year of income: Year ending 31 March 2002
Legislative References:
Fringe Benefits Tax Assessment Act 1986
subsection 7(1)
subsection 136(1)
Keywords
Benefit
Car fringe benefits
FBT car
FBT car expenses
Fringe benefits
Fringe benefits tax
Residual fringe benefits
Date reviewed: 22 August 2014
ISSN: 1445-2782
| Date: | Version: | |
| 18 June 2003 | Original statement | |
| You are here | 28 July 2017 | Updated statement |
| 29 October 2024 | Updated statement |
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