Open forum 26 May

Session overview

This session provides practical guidance on employer superannuation, fringe benefits tax (FBT) obligations, and cyber security awareness. Topics include Payday Super requirements, correcting reporting mistakes, the closure of the Small Business Superannuation Clearing House, FBT considerations for dual cab utes, reporting obligations, and how to identify and respond to common scams and cyber threats during tax time.

Webinar recording

Watch the recording at a time that suits you and claim continuing professional educationExternal Link. Attendance certificates are not issued for viewing webinar recordings.

Key insights from tax practitioner questions

Missed the forum? Here’s what was asked:

• Fringe benefits tax (FBT) and dual cab utes
• Cyber security

Fringe benefits tax (FBT) and dual cab utes

Vehicle classification and FBT exemptions

Car fringe benefit treatment for utes with a carrying capacity of less than one tonne

A car fringe benefit may arise if you provide an employee with private use of:

• a passenger vehicle designed to carry fewer than 9 passengers (including the driver), including a 4-wheel-drive vehicle but not a motorbike
• an eligible commercial vehicle, where the use exceeds limited private use (limited private use of an eligible commercial vehicle may be exempt).

Refer to How FBT applies to cars for more information.

Availability of the 20% statutory method for commercial vehicles

Under the FBT law the 20% statutory method is only available for car fringe benefits. Commercial vehicles that are designed to carry a load of one tonne or more, or more that 8 passengers (including the driver) are not cars.

FBT exemption for dual cab utes not used to carry loads

If the vehicle is an eligible vehicle and its private use is limited, the FBT exemption applies even if the commercial vehicle is not actually used to carry loads. See Exempt use of eligible vehicles for more information.

Salary packaged vs employer-provided vehicles

A vehicle is not part of a salary package if it is provided outside a salary sacrifice or salary packaging arrangement. While some vehicles are salary packaged, others are employer-provided work vehicles. This distinction can matter for some FBT concessions and exemptions because certain concessions and exemptions are unavailable where the benefit is provided under a salary packaging arrangement.

Private use and home-to-work travel

Home-to-work travel where tools are required to be transported

Home-to-work travel is ordinarily private travel and therefore would be included as private use. Carrying tools does not automatically change that result. A different outcome may arise only in limited circumstances, such as where the tools are bulky and essential, there is no secure storage at work, and transporting them is necessary. For more information, refer to Taxation Ruling TR 2021/1 Income tax: when are deductions allowed for employee transport expenses?

Travel between home and work on a motorbike for FBT purposes

A motorbike is excluded from the definition of a car for FBT purposes. An FBT exemption only applies if the employee only uses the motorbike for:

• travel between home and work
• travel that is incidental to travel in the course of employment duties
• non-work-related use that is minor, infrequent, and irregular.

If the use of the eligible vehicle exceeds the above, then it is a residual fringe benefit, and the taxable value needs to be worked out using either the cents per kilometre or operating cost method.

For more information refer to 18.6 Taxable value of motor vehicles other than cars in Fringe benefits tax – a guide for employers.

Inclusion of home-to-work travel when calculating personal kilometres for eligible vehicles

Home-to-work travel is not included if the vehicle is only used for:

• travel between home and work
• travel that is incidental to travel in the course of employment duties
• non-work-related use that is minor, infrequent, and irregular.

If the use of the eligible vehicle exceeds the use above, then home to work travel is included when calculating the taxable value of the fringe benefit. Refer to Exempt use of eligible vehicles for more information.

Definition of extensive business use for eligible vehicles

There is no set definition of extensive business use, it will depend on the facts and circumstances surrounding the use of the vehicle. Refer to Miscellaneous Taxation ruling MT 2034 Fringe benefits tax: private use of motor vehicles other than cars for more information.

Substantiating regular minor private use of work vehicles

A business is expected to keep records that support its FBT position. For vehicle use, this may include logbooks, odometer records, employer policies, employee declarations, diary records, and other records. If the employee’s account is unreliable, the employer should rely on contemporaneous records and other available evidence. See Record keeping for FBT (for more information.

Valuation and calculating taxable value

Application of the cents per kilometre method for eligible vehicles

For information about the cents per km method for vehicles that are not cars, refer to Taxable value of private use of eligible vehicles and 18.6 Taxable value of motor vehicles other than cars in Fringe benefits tax– A guide for employers.

Deductibility of a ute purchased by an allied health company for director use

The income tax deductibility of a ute depends on how it is used and whether the expense is incurred in gaining or producing assessable income. For information about the deductibility, see Motor vehicles used by your employees.

Employee status and who FBT applies to

FBT obligations for non-employees and trust beneficiaries

FBT generally applies only where a benefit is provided in respect of the employment of an employee or an associate of an employee. It does not apply merely because a person receives trust distributions as a beneficiary.

However, if a person is also an employee, director, or shareholder employee and they receive a benefit in respect of that employment, FBT can still apply. For further information, refer to How fringe benefits tax works. Please contact us for tailored advice if you are unsure if a person is an employee for FBT purposes.

FBT treatment of vehicles provided to directors of investment companies

The director of a company that only derives investment income can be an employee of the company for FBT purposes. It will depend on the specific facts and the role of the director as to whether any benefits the director receives are provided in respect of employment. Please contact us for tailored advice if you are unsure if a person is an employee for FBT purposes.

Cyber security

ATO voice authentication when a taxpayer has a cold or flu

Voice authentication considers a variety of factors, including background noise and changes in a voice. When you phone us, the voice authentication system can verify you even if you have a cold. We can do this by analysing several characteristics in your voice, including pitch, tone and how you speak. By matching these characteristics against the voiceprint, you have enrolled with us, we can accurately confirm your identity.

Use of artificial intelligence (AI) to bypass multifactor authentication measures

The ATO uses a modern voice biometric system that detects non-genuine voices, including AI-generated and recorded playback. Voice biometrics is one layer of authentication within a broader, layered approach to account security. Additional authentication requirements apply to higher-risk transactions, such as changes to financial account details. The Voice Biometric system is monitored and regularly updated and enhanced to strengthen its capability.