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Edited version of your written advice
Authorisation Number: 1012962734732
Date of advice: 8 February 2016
Ruling
Subject: Fringe benefits tax
Question 1
Is the Vehicle a car for FBT purposes?
Answer
Yes
Question 2
Is the Vehicle with certain adjustments a car for FBT purposes?
Answer
Yes
This ruling applies for the following periods:
Year ended 31 March 2017
Year ended 31 March 2018
Year ended 31 March 2019
The scheme commences on:
2016
Relevant facts and circumstances
The Vehicle's specifications and adjustments to those specifications have been provided.
Relevant legislative provisions
Fringe Benefits Tax Assessment Act 1986, subsection 136(1)
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.
Question 1
Summary
The Vehicle is a car for FBT purposes.
Detailed reasoning
For the purposes of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) a car has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997):
…a motor vehicle (except a motor cycle or similar vehicle) designed to carry a load of less than 1 tonne and fewer than 9 passengers.
The Vehicle carries up to five passengers therefore it will be a car if it is designed to carry a load of less than one tonne.
Paragraph 11 of Miscellaneous Taxation Ruling MT 2024 provides guidance on determining whether a vehicle is designed to carry a load of one tonne or more:
…the designed load capacity of a motor vehicle is to be taken as the gross vehicle weight as specified on the compliance plate by the manufacturer (broadly, the maximum all-up loaded weight), reduced by the basic kerb weight of the vehicle. For this purpose, the basic kerb weight is synonymous with the un-laden weight, as specified in the Australian Design Rules, being the weight of the vehicle with a full tank of fuel, oil and coolant together with spare wheel, tools (including jack) and installed options.
The GVM for the Vehicle less the basic kerb weight results in a designed load capacity for the Vehicle of less than one tonne. Therefore the Vehicle fits the definition of a car for FBT purposes.
Question 2
Summary
The Vehicle with certain adjustments is a car for FBT purposes.
Detailed reasoning
With these adjustments the vehicle also has a designed load capacity of less than one tonne therefore fitting the definition of a car for FBT purposes.
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