Private ruling: Car fringe benefit
Published: September 2017
Ruling period: 1 July 2015 to 30 June 2020
Date scheme commenced: 1 July 2015

Ruling: Q1: 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)? | A1: Yes

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: ● Campervan XYZ, which is a product of the modification process to the alternate van 3.55 tonne - 316 CDI motor vehicle ● Gross Vehicle Mass (GVM) is 3,XXX kg ● Tare weight with all fitted options is 3,XXX kg ● Load carrying capacity approx. 650 kg ● Manufacturer designed to carry 4 passengers 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 - 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 following types of vehicles (including four-wheel drive vehicles) are cars: ● motor cars, station wagons, panel vans and utilities (excluding panel vans and utilities designed to carry a load of one tonne or more) ● all other goods-carrying vehicles designed to carry less than one tonne ● all other passenger-carrying vehicles designed to carry fewer than nine occupants. 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.