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Edited version of your written advice
Authorisation Number: 1013104117885
Date of advice: 10 October 2016
Ruling
Subject: Fringe Benefit Tax - Car Benefit
Issue 1
Question 1
Is the car benefit an exempt benefit?
Answer
Yes.
This ruling applies for the following periods:
Income Year ended 30 June 2018
The scheme commences on:
01 July 2017
Relevant facts and circumstances
The entity plans to purchase a new car and to provide it to a current employee.
Use of the car by the employee is limited to certain work-related travel and non-work-related use that is minor, infrequent and irregular.
The car is designed to carry a load of less than one tonne and for the principal purpose of other than carrying passengers.
Relevant legislative provisions
Fringe Benefits Tax Assessment Act 1986
Reasons for decision
Unless otherwise stated, all legislative references under Issue 1 are to the Fringe Benefits Tax Assessment Act 1986.
On the facts and on the basis that:
• the car is provided to a current employee in respect to the employment of the employee
• use of the car by the employee is limited to certain work-related travel as defined in subsection 136(1) and
• non-work-related use that is minor, infrequent and irregular, and
• the car is designed to carry a load of less than one tonne and for the principal purpose of other than carrying passengers,
the car benefit is an exempt benefit in relation to the year of tax under subsection 8(2).