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Edited version of your written advice

Authorisation Number: 1051229383154

Date of advice: 29 May 2107

Ruling

Subject: Car fringe benefit

Question 1

Does the motor vehicle known as Campervan XYZ, as a motor-powered vehicle, meet the definition of a 'car' for the purposes of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Answer

Yes

This ruling applies for the following period:

1 July 2015 to 30 June 2020

The scheme commences on:

1 July 2015

Relevant facts and circumstances

You propose entering into a salary sacrifice arrangement under an associate lease with your employer.

Under the arrangement you propose obtaining use of the following motor vehicle:

The modification process involves the addition of various items such as kitchen with sink and microwave oven, table, TV, fridge, water tanks, lounge which converts to an electric roll down bed, shower, toilet, etc.

Relevant legislative provisions

Fringe Benefits Tax Assessment Act 1986 subsection 136(1)

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

Reasons for decision

Summary

The Campervan XYZ is a 'car' for the purposes of the FBTAA.

Detailed reasoning

Subdivision A of Division 2 of Part III of the FBTAA deals with car fringe benefits. A car fringe benefit most commonly arises where an employer owns or leases a car that they make available for the private use of their employee.

To determine whether a motor vehicle meets the definition of 'car' for the purposes of the FBTAA, the following definitions are relevant.

A 'car' is defined in subsection 136(1) of the FBTAA to have the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997).

Subsection 995-1(1) of the ITAA 1997 states 'car means a motor vehicle (except a motor cycle or similar vehicle) designed to carry a load of less than one tonne and fewer than 9 passengers.'

A 'motor vehicle' is defined in subsection 136(1) of the FBTAA to have the meaning given by sub-section 995-1 of the ITAA 1997.

Subsection 995-1(1) of the ITAA 1997 states 'motor vehicle means any motor-powered road vehicle (including a 4 wheel drive vehicle).'

In addition, the Taxation Office publication Fringe benefits tax - a guide for employers states:

The Campervan XYZ is a motor-powered road vehicle designed to carry a load of less than one tonne and less than nine passengers. It therefore satisfies the definition of and is a car for the purposes of the FBTAA.

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