Private ruling: Fringe benefits tax
Date of advice: 8 February 2016
Published: April 2016
Ruling period: Year ended 31 March 2017 | Year ended 31 March 2018 | Year ended 31 March 2019
Date scheme commenced: 2016

Ruling: Q1: Is the Vehicle a car for FBT purposes? | A1: Yes | Q2: Is the Vehicle with certain adjustments a car for FBT purposes? | A2: Yes

Relevant facts and circumstances: The Vehicle's specifications and adjustments to those specifications have been provided.

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 Vehicle is a car for FBT purposes. | Detailed Reasoning - Detailed reasoning: For the purposes of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) a car has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997): …a motor vehicle (except a motor cycle or similar vehicle) designed to carry a load of less than 1 tonne and fewer than 9 passengers. The Vehicle carries up to five passengers therefore it will be a car if it is designed to carry a load of less than one tonne. Paragraph 11 of Miscellaneous Taxation Ruling MT 2024 provides guidance on determining whether a vehicle is designed to carry a load of one tonne or more: …the designed load capacity of a motor vehicle is to be taken as the gross vehicle weight as specified on the compliance plate by the manufacturer (broadly, the maximum all-up loaded weight), reduced by the basic kerb weight of the vehicle. For this purpose, the basic kerb weight is synonymous with the un-laden weight, as specified in the Australian Design Rules, being the weight of the vehicle with a full tank of fuel, oil and coolant together with spare wheel, tools (including jack) and installed options. The GVM for the Vehicle less the basic kerb weight results in a designed load capacity for the Vehicle of less than one tonne. Therefore the Vehicle fits the definition of a car for FBT purposes. | Summary: The Vehicle with certain adjustments is a car for FBT purposes. | Detailed Reasoning - Detailed reasoning: With these adjustments the vehicle also has a designed load capacity of less than one tonne therefore fitting the definition of a car for FBT purposes.

Reasons for decision: While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision.