Clear guidance and structured reporting to support FBT compliance.
If you provide a tool of trade vehicle or novated lease vehicle, FBT obligations may arise where there is private use beyond business purposes.
Example: If a sales rep uses a work vehicle to commute between home and the office or for weekend trips, that personal use is considered a fringe benefit.
For FBT purposes, vehicles considered to be ‘cars’ include:
Station wagons
Panel vans
Utilities (including 4WDs) carrying less than one tonne
Any passenger vehicle designed for fewer than 9 people
Custom Fleet’s FBT reporting includes:
The vehicle’s base cost
Operating costs
A breakdown of business vs. personal use (as reported by you)
Calculated FBT payable amount
This gives you everything you need to stay compliant and lodge your FBT return confidently.
There are two primary methods for calculating FBT on vehicles:
Statutory formula method: Applies a fixed percentage to determine taxable value.
Operating cost method: Calculates FBT based on the actual proportion of private use. The higher the private use percentage, the higher the FBT payable.
If your vehicle isn’t classified as a car and is used beyond allowed limits for private use, it may be considered a residual benefit. In these cases:
The operating cost method may apply, or
If primarily used for business, the cents per kilometre method may be used.
At the end of the FBT year, FBT must be calculated for each vehicle and reported to the Australian Taxation Office.
As part of Australia’s emissions reduction initiatives, eligible electric and low-emission vehicles may qualify for an FBT exemption.
FBT does not apply to private use of an eligible electric vehicle where all of the following conditions are met:
The vehicle is a zero or low emissions vehicle
The vehicle was first held and used on or after 1 July 2022
The vehicle is used by a current employee or their associates
Luxury Car Tax has never been payable on the importation or sale of the vehicle
