Edited version of private ruling

Authorisation Number: 1011703566422

This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.

Ruling

Subject: FBT: Exempt motor vehicles

Question 1

Will the Toyota LandCruiser Troop Carrier VDJ78R WorkMate standard 3 seat turbo diesel manual (the three seater vehicle) fall within subparagraph 8(2)(a) of the Fringe Benefits Tax Assessment Act 1986 (the FBTAA) so that it might qualify for fringe benefits tax exemption under subsection 8(2) of the FBTAA if all the other conditions are met?

Answer

The three seater vehicle will fall within subparagraph 8(2)(a) of the FBTAA and it will qualify for fringe benefits tax exemption under subsection 8(2) of the FBTAA if all the other conditions are met.

Question 2

Will the Toyota LandCruiser Troop Carrier VDJ78R GXL 5 seat turbo diesel manual (the five seater vehicle) fall within subparagraph 8(2)(a) of the FBTAA so that it might qualify for fringe benefits tax exemption under subsection 8(2) of the FBTAA if all the other conditions are met?

Answer

The five seater vehicle will fall within subparagraph 8(2)(a) of the FBTAA and it will qualify for fringe benefits tax exemption under subsection 8(2) of the FBTAA if all the other conditions are met.

Question 3

Will the Toyota LandCruiser Troop Carrier VDJ78R WorkMate military 11 seat turbo diesel manual (the 11 seater vehicle) fall within subparagraph 8(2)(a) of the FBTAA so that it might qualify for fringe benefits tax exemption under subsection 8(2) of the FBTAA if all the other conditions are met?

Answer

The 11 seater vehicle will not fall within subparagraph 8(2)(a) of the FBTAA and it cannot qualify for fringe benefits tax exemption under subsection 8(2) of the FBTAA.

Question 4

Will the three seater vehicle satisfy the condition contained in subparagraph 47(6)(aa) of the FBTAA so that it might qualify for fringe benefits tax exemption under subsection 47(6) of the FBTAA if all the other conditions are met?

Answer

The three seater vehicle will not satisfy the conditions contained in subparagraph 47(6)(aa) of the FBTAA and it cannot qualify for fringe benefits tax exemption under subsection 47(6) of the FBTAA.

Question 5

Will the five seater vehicle satisfy the condition contained in subparagraph 47(6)(aa) of the FBTAA so that it might qualify for fringe benefits tax exemption under subsection 47(6) of the FBTAA if all the other conditions are met?

Answer

The five seater vehicle will not satisfy the conditions contained in subparagraph 47(6)(aa) of the FBTAA and it cannot qualify for fringe benefits tax exemption under subsection 47(6) of the FBTAA.

Question 6

Will the 11 seater vehicle satisfy the condition contained in subparagraph 47(6)(aa) of the FBTAA so that it might qualify for fringe benefits tax exemption under subsection 47(6) of the FBTAA if all the other conditions are met?

Answer

The 11 seater vehicle will satisfy the conditions contained in subparagraph 47(6)(aa) of the FBTAA and it will qualify for fringe benefits tax exemption under subsection 47(6) of the FBTAA if all the other conditions are met.

This ruling applies for the following periods:

Year ended 30 June 2010

Year ended 30 June 2011

Year ended 30 June 2012

Year ended 30 June 2013

Relevant facts and circumstances

The three categories of vehicle which are the subject of the present ruling have a gross vehicle weight rating of 3,300 kg and a kerb weight of 2330 kg.

The Toyota LandCruiser Troop Carrier VDJ78R WorkMate standard 3 seat turbo diesel manual (the three seater vehicle) can carry three persons (including the driver).

The Toyota LandCruiser Troop Carrier VDJ78R GXL 5 seat turbo diesel manual (the five seater vehicle) can carry five persons (including the driver).

The Toyota LandCruiser Troop Carrier VDJ78R WorkMate military 11 seat turbo diesel manual (the 11 seater vehicle) can carry eleven persons (including the driver).

Designs showing the three seater vehicle, the five seater vehicle and the 11 seater vehicle are set out below:

Extracts from the specifications for the five seater vehicle which were provided on the manufacturer's website are set out below:

Troop Carrier GXL

V8 Turbo Diesel

§ 4.5 litre V8 Turbo Diesel engine

§ Over 1500km range•• with two 90L tanks fitted

§ Central locking/keyless entry

§ Tilt and telescopic# steering wheel

§ Front fog lamps

Note: Some vehicle dimension figures are approximate only and may vary due to options and accessory fitment.

DIMENSIONS

Note: Some vehicle dimension figures are approximate only and may vary due to options and accessory fitment. External dimensions

- Length (mm) 5220

- Width (mm) 1790

- Height (mm) 2115

- Wheelbase (mm) 2980

- Max wading depth (mm) 700

Off road specifics

- Approach angle 38.0

- Departure angle 25.0

WEIGHTS & CAPACITIES

Note: Kerb, tare & payload weights are nominal and will vary depending on options and tray/body type. Weights

- Kerb weight (kg) 2345

- Gross vehicle weight rating (kg) 3300

- Gross trailer weight braked (kg) 3500

- Gross trailer weight unbraked (kg) 750

Seating

- Seating capacity 5

Cargo area dimensions Standard

Fuel tank - main

- Capacity (L) 90

- Fuel type Diesel

Fuel tank - auxiliary

- Capacity (L) 90

- Fuel type Diesel

Note: Genuine Towbar Capacity - Refer to Genuine Accessory Guide, as it may differ from Vehicle Towing Capacity in some circumstances.
Towing capacity - Subject to state regulations, towbar design and towing equipment.

ENGINE

Engine

- Engine type Diesel

- Capacity (cc) 4461

- Engine description Eight cylinders, V formation, gear and chain driven, DOHC 32 valve, compacted graphite iron cylinder block and aluminium alloy heads.

- Configuration V

- Head composition Light alloy

- Valve gear type DOHC

- Number of valves per cylinder 4

Fuel

- Fuel type Diesel

Power

- Maximum power kW 151

- Rpm for maximum power 3400

- Maximum torque Nm 430

- Rpm for maximum torque 1200

Forced induction

- Intercooler Standard

Fuel system

- Injection type Diesel common rail

- Ignition type Diesel

Fuel consumption - ADR 81/02

- Fuel consumption - combined (L/100km) 11.9

Emission control level

- Australia - greenhouse rating 3.5

- Australia - air pollution rating 3

Note: Fuel consumption will vary depending on driving conditions/style, vehicle conditions and options/accessories.

DRIVETRAIN

Drive

- Driven wheels 4x4

- Four wheel drive type Part-time

- 4WD hub engagement Manual hubs

Transmission

- Transmission type Manual

- Number of gears 5

- Transmission description Manual

Limited slip differential - rear Standard

Differential lock - front Optional extra

Differential lock - rear Optional extra

STEERING

Steering

- Type Recirculating Ball & Nut

BRAKES

Disc brakes

- Number of disc brakes 4

- Number of ventilated disc brakes 4

- Front brake rotor size (mm) 322 x 32

- Rear brake rotor size (mm) 312 x 18

SUSPENSION

Suspension - front

- Suspension description Rigid live axle, leading arm, coil springs, dampers and anti-roll bar

Suspension - rear

- Suspension description Rigid live axle, semi-elliptic leaf springs and dampers.

INTERIOR TRIM AND SEATING

Seat upholstery

- Main seat material Cloth

Floor covering

- Floor covering in cabin Textile

Grab handles

- Number of grab handles 5

Front seat - driver

- Front seat type Bucket

- Slide adjustment Standard

- Slide adjustment type Manual

- Recline adjustment Standard

- Recline adjustment type Manual

Front seat - passenger

- Front seat type Bucket

- Slide adjustment Standard

- Slide adjustment type Manual

- Recline adjustment Standard

- Recline adjustment type Manual

Rear seats - front facing

- Folding rear seat back One-piece

Head restraints - front seats Standard

Head restraints - rear seats Standard

FEATURES

Air conditioning Optional extra

Power windows - front Standard

STORAGE

Glovebox

- Lockable glovebox Standard

Console - floor Standard

Seat back storage - behind front seat(s)

- Seat back storage - type Pocket

Door pockets - driver's side Standard

Door pockets - passenger's side Standard

Beverage holders - front seats

- Number of bottle holder/s 1

LIGHTING

Courtesy (dome) lights Standard

Cargo light Standard

SOUND SYSTEM

Audio system

- Audio includes radio AM & FM

- Audio includes single CD Standard

- MP3 compatibility Standard

Speakers

- Number of speakers 4

VEHICLE COMMUNICATIONS

Mobile phone additions

- Wireless connection Bluetooth

Extracts from the specifications for the three Seater Vehicle and 11 Seater Vehicle which were provided on the manufacturer's website are set out below:

Troop Carrier WorkMate

§ V8 Turbo Diesel

§ 4.5 litre V8 Turbo Diesel engine

§ 3 or 11 seats

§ Side door impact protection beams

§ Halogen headlamps

§ Air cleaner snorkel

§ Power steering

DIMENSIONS

Note: Some vehicle dimension figures are approximate only and may vary due to options and accessory fitment. External dimensions

- Length (mm) 5210

- Width (mm) 1790

- Height (mm) 2115

- Wheelbase (mm) 2980

- Max wading depth (mm) 700

Off road specifics

- Approach angle 38.0

- Departure angle 25.0

WEIGHTS & CAPACITIES

Note: Kerb, tare & payload weights are nominal and will vary depending on options and tray/body type. Weights

- Kerb weight (kg) 2330

- Gross vehicle weight rating (kg) 3300

- Gross trailer weight braked (kg) 3500

- Gross trailer weight unbraked (kg) 750

Seating

- Seating capacity 11

Cargo area dimensions Standard

Fuel tank - main

- Capacity (L) 90

- Fuel type Diesel

Fuel tank - auxiliary

- Capacity (L) 90

- Fuel type Diesel

Note: Genuine Towbar Capacity - Refer to Genuine Accessory Guide, as it may differ from Vehicle Towing Capacity in some circumstances.
Towing capacity - Subject to state regulations, towbar design and towing equipment.

ENGINE

Engine

- Engine type Diesel

- Capacity (cc) 4461

- Engine description Eight cylinders, V formation, gear and chain driven, DOHC 32 valve, compacted graphite iron cylinder block and aluminium alloy heads.

- Configuration V

- Head composition Light alloy

- Valve gear type DOHC

- Number of valves per cylinder 4

Fuel

- Fuel type Diesel

Power

- Maximum power kW 151

- Rpm for maximum power 3400

- Maximum torque Nm 430

- Rpm for maximum torque 1200

Forced induction

- Intercooler Standard

Fuel system

- Injection type Diesel common rail

- Ignition type Diesel

Fuel consumption - ADR 81/02

- Fuel consumption - combined (L/100km) 11.9

Emission control level

- Australia - greenhouse rating 3.5

- Australia - air pollution rating 3

Note: Fuel consumption will vary depending on driving conditions/style, vehicle conditions and options/accessories.

DRIVETRAIN

Drive

- Driven wheels 4x4

- Four wheel drive type Part-time

- 4WD hub engagement Manual hubs

Transmission

- Transmission type Manual

- Number of gears 5

- Transmission description Manual

Limited slip differential - rear Standard

Differential lock - front Option pack

Differential lock - rear Option pack

STEERING

Steering

- Type Recirculating Ball & Nut

BRAKES

Disc brakes

- Number of disc brakes 4

- Number of ventilated disc brakes 4

- Front brake rotor size (mm) 322 x 32

- Rear brake rotor size (mm) 312 x 18

SUSPENSION

Suspension - front

- Suspension description Rigid live axle, leading arm, coil springs, dampers and anti-roll bar

Suspension - rear

- Suspension description Rigid live axle, semi-elliptic leaf springs and dampers.

INTERIOR TRIM AND SEATING

Seat upholstery

- Main seat material Vinyl

Floor covering

- Floor covering in cabin Plastic/rubber

Grab handles

- Number of grab handles 3

Front seat - driver

- Front seat type Bucket

- Slide adjustment Standard

- Slide adjustment type Manual

- Recline adjustment Standard

- Recline adjustment type Manual

Front seat - passenger

- Front seat type Bench

- Slide adjustment Standard

- Slide adjustment type Manual

- Recline adjustment Standard

- Recline adjustment type Manual

Rear seats - side facing

- Folding rear seat back Fixed

Head restraints - front seats Standard

FEATURES

Air conditioning Optional extra

STORAGE

Glovebox

- Lockable glovebox Standard

Beverage holders - front seats

- Number of bottle holder/s 1

LIGHTING

Courtesy (dome) lights Standard

Cargo light Standard

SOUND SYSTEM

Audio system

- Audio includes radio AM & FM

- Audio includes single CD Standard

- MP3 compatibility Standard

Speakers

- Number of speakers 2

VEHICLE COMMUNICATIONS

Mobile phone additions

- Wireless connection Bluetooth

The 'LandCruiser 70 eBrochure' for the range of land cruiser vehicles which includes the present vehicles is located on the manufacturers website. The brochure points to the power of the 4.5 litre V8 turbo diesel engine which delivers 151 kW of power and 430 Nm of torque and the 'suitably muscular' wide body design. The vehicles are described as a 'workhorse' with the 'power you need when carrying your full load'. The wide opening rear doors make for easy loading and unloading of people and heavy gear. The brochure also notes the interior comfort of the vehicles and points to various inclusions, such as, a CD player, USB input, iPod control and Bluetooth handsfree capability. It is added that the three seater vehicle is available without rear seats for increased cargo room

Relevant legislative provisions

Fringe Benefits Tax Assessment Act 1986 subsection 8(2)

Fringe Benefits Tax Assessment Act 1986 subsection 47(6)

Income Tax Assessment Act 1997 subsection 995-1(1)

Reasons for decision

While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision.

Subsection 8(2)

Subsection 8(2) of the FBTAA provides an exemption if certain conditions are met, including:   

(a) the car is:

(i) a taxi, panel van or utility truck, designed to carry a load of less than 1 tonne; or

(ii) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers)...

The three seater vehicle

The Toyota LandCruiser Troop Carrier VDJ78R WorkMate standard 3 seat turbo diesel manual (the three seater vehicle) will clearly be a 'motor vehicle'. It will be a 'car', as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997, if it is designed to carry a load of less than 1 tonne and fewer than 9 passengers.

The difference between the gross vehicle weight rating of 3,300 kg and the kerb weight of 2330 kg indicates that it can carry a load (including the weight of the persons in the vehicle) of about 970 kg. It is designed to carry three persons including the driver. Hence it carries less that 1 tonne and less than 9 persons. Hence, it comes within the definition of a 'car'.

The next question is whether it meets the test in subparagraph 8(2)(a)(ii). It satisfies the first part of that test because it has a carry capacity of less than one tonne.

It will fail the second part of the test if it is designed for the principal purpose of carrying passengers. It has both a purpose of carrying passengers and a purpose of carrying loads. When asking what the principal purpose of a crew cab vehicle is, it is important to compare the passenger carrying capacity to the total carrying capacity paragraph: See paragraph 14 of Taxation Ruling MT 2024. In the case of vehicles which are not crew cab vehicles it is also relevant to consider the appearance, presentation and specifications of the vehicle and the promotional materials and the marketing: See Taxation Determination TD 94/19. According to the Australian Design Rules, three persons will weigh 68 kilograms each, that is, 204 kilograms. The weight of those three persons is less than one quarter of the total load carrying capacity of about 970 kg. There is space at the rear of the vehicle to carry loads. The marketing brochure on the manufacturer's website focuses on the engine capacity of the vehicle but also notes the comfort of the vehicle for the driver and passengers.

Having regard to the fact that room is available in the vehicle to permit loads to be carried and the fact that less than one quarter of the total load carrying capacity is used to carry the passengers (including the driver), it is considered that the principal purpose of the three seater vehicle is not to carry passengers. Hence, it qualifies under subparagraph 8(2)(a)(ii) because it is not principally a passenger car.

The five seater vehicle

A similar reasoning applies to the Toyota LandCruiser Troop Carrier VDJ78R GXL 5 seat turbo diesel manual (the five seater vehicle). It is a 'motor vehicle' and it is a 'car' which is designed to carry a load of less than 1 tonne and fewer than 9 passengers.

In a similar fashion to the three seater vehicle, the five seater vehicle satisfies the first part of the test in subparagraph 8(2)(a)(ii) because it has a carry capacity of less than one tonne.

Again, it will fail the second part of the test in subparagraph 8(2)(a)(ii) if it is designed for the principal purpose of carrying passengers. It has both a purpose of carrying passengers and a purpose of carrying loads. Five persons will weigh approximately, 68 kilograms each, that is, 340 kilograms. The weight of those five persons is only about one third of the total carrying capacity of about 970 kg. There is space at the rear of the vehicle to carry loads. In these circumstances, it is considered that the principal purpose of the five seater vehicle is not to carry passengers. As stated above, the marketing brochure on the manufacturer's website focuses on the engine capacity of the vehicle but also notes the comfort of the vehicle for the driver and passengers.

Having regard to the fact that some room is available in the vehicle to permit loads to be carried and the fact that about one third of the total load carrying capacity is used to carry the passengers (including the driver), it is considered that the principal purpose of the five seater vehicle is not to carry passengers. Hence, it qualifies under subparagraph 8(2)(a)(ii) because it is not principally a passenger car.

The 11 seater vehicle

The Toyota LandCruiser Troop Carrier VDJ78R WorkMate military 11 seat turbo diesel manual (the 11 seater vehicle) qualifies as a motor vehicle, but, because it is designed to carry 9 or more passengers, it does not fall within the definition of a 'car'. Note, the vehicle is supplied by the manufacturer with seating for 11 persons and hence it is fair to say that it was 'designed' to carry that number. Even if the addition of extra seating by the manufacturer is not considered to be a feature which is part of the design of the vehicle (since the same model has different seating configurations with fewer seats), the fact that the manufacturer has made a permanent addition of the extra seats would mean that the vehicle, as modified, was designed to carry that number of persons (compare Taxation Ruling MT 2033).

Because it is not a 'car', subsection 8(2) does not apply to the 11 seater vehicle.

Subsection 47(6)

Subsection 47(6) of the FBTAA provides an exemption if certain conditions are met, including:   

(aa) the motor vehicle is not:

(i) a taxi let on hire to the provider; or

(ii) a car, not being:

(A) a panel van or utility truck; or

(B) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers)...

The 11 seater vehicle

To qualify in terms of subparagraph 47(6)(aa) of the FBTAA a vehicle must be a 'motor vehicle'. The 11 seater vehicle is a 'motor vehicle'.

Further, to qualify in terms of subparagraph 47(6)(aa) of the FBTAA the vehicle must not be (i) a taxi let on hire to the provider or (ii) certain categories of 'cars'.

Because the vehicle is not a taxi, it will satisfy the requirement that it is not a vehicle mentioned in subparagraph 47(6)(aa)(i) of the FBTAA.

The 11 seater vehicle is not a car for the reasons discussed above. Because the vehicle is not a 'car', it will satisfy the requirement that it is not a vehicle mentioned in subparagraph 47(6)(aa)(ii) of the FBTAA.

As the vehicle is not a taxi or a 'car', it will qualify in terms of subparagraph 47(6)(aa) of the FBTAA.

The three seater vehicle and the five seater vehicle

To qualify in terms of subparagraph 47(6)(aa) of the FBTAA a vehicle must be a 'motor vehicle' and it must not be a taxi or a 'car'. The three seater and the five seater vehicles fall within the definition of a 'car'. Because they fall within that definition they will not qualify for exemption under subsection 47(6) of the FBTAA.

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).