Advice under development: Decision impact statement on SEPL Pty Ltd as trustee of the SFT Trust v Commissioner of Taxation [2026] FCAFC 36
Issue: FBT payable on the private use of motor vehicles by directors of a corporate trustee of a discretionary trust
Category: FBT
Type of advice: Decision impact statement
Status: Under development
Purpose: This Decision impact statement explains the Full Federal Court's decision in this case, which concerned whether 3 brothers, who were the directors of a corporate trustee of a discretionary trust and also beneficiaries of this discretionary trust, were: | each an ‘employee’ within the meaning of that term in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA), and | (if the brothers were each found to be an employee) whether car benefits provided to them were provided ‘in respect of’ their employment. | The decision confirms that the common law meaning of ‘employee’ can be used to determine if a person is an employee within subsection 136(1) of the FBTAA. The capacity in which a person receives benefits from a trust will need to be determined having regard to all the facts and circumstances of a case. Other tax provisions may also apply to tax arrangements involving private use of motor vehicles by directors of a corporate trustee of a discretionary trust.
Comments: The Decision impact statement on SEPL Pty Ltd as trustee of the SFT Trust v Commissioner of Taxation [2026] FCAFC 36 published on 1 July 2026. Comments period closed on 31 July 2026.
Referenced documents: Decision impact statement