Private ruling: Fringe benefits tax – use of motor vehicles
Date of advice: 7 March 2019
Published: May 2019
Ruling period: Year ended 31 March 20xx | Year ended 31 March 20xx | Year ended 31 March 20xx
Date scheme commenced: 1 April 20xx

Ruling: Q1: Does the provision of certain vehicles to employees constitute a car fringe benefit under section 7 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) if the vehicle is a ‘car’ and is only used for travel in accordance with the employer policy? | A1: Yes | Q2: Is the provision of and certain vehicles to employees exempt under either subsection 8(2) or subsection 47(6) of the FBTAA if the vehicle is only used for travel in accordance with employer policy? | A2: No | Q3: In the event that the provision of certain vehicles does constitute a benefit under either section 7 or section 45 of the FBTAA, will travel performed by employees in these vehicles in accordance with the employer policies be considered business use under the operating cost method on the basis that the vehicles are required to transport bulky equipment? | A3: No | Q4: In the event that the provision of certain vehicles constitutes a benefit under either section 7 or section 45 of the FBTAA, will any of the following journeys be considered a ‘business journey’? a) the employee in a particular role travels between home and their regular place of work b) the employee in a particular role travels between home and their regular place of work c) the employee in a particular role travels between home and another location in response to a call-out d) the employee in a particular role travels between home and another location in response to a call-out e) the employee garages a vehicle at home where they have been working in the field and return home rather than returning to their regular place of employment f) the employee garages a vehicle at home as they are traveling directly to a location that is not their regular place of work the following morning g) the employee in a particular role travels between their home to a non-home and non-work location on rare occasions h) the employee in a particular role travels between their home to a non-home and non-work location on rare occasions | A4: a) Yes b) Yes c) Yes d) Yes e) Yes f) Yes g) No h) No

Relevant facts and circumstances: You have previously received a private ruling, authorisation number ************* on this arrangement. The facts in that Private Ruling remain accurate and there have been no material changes to your policies or practice since it was issued.

Relevant legislative provisions: Fringe Benefits Tax Assessment Act 1986 , section 7 | Fringe Benefits Tax Assessment Act 1986 , subsection 7(2) | Fringe Benefits Tax Assessment Act 1986 , subsection 7(2A) | Fringe Benefits Tax Assessment Act 1986 , subsection 7(3) | Fringe Benefits Tax Assessment Act 1986 , subsection 8(2) | Fringe Benefits Tax Assessment Act 1986 , section 10 | Fringe Benefits Tax Assessment Act 1986 , subsection 47(6) | Fringe Benefits Tax Assessment Act 1986 , subsection 136(1) | Income Tax Assessment Act 1997 (ITAA 1997) section 995-1

Reasons for decision: Summary: While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision. The facts, the law and the Commissioner’s view have not changed since the issue of private ruling authorisation number *************. Although Taxation Ruling IT 112 Deductibility of travelling expenses between residence and place of employment or business is withdrawn, the view expressed in that ruling in relation to the transport of bulky equipment is included in both Miscellaneous Taxation Ruling MT 2027 Fringe benefits tax: private use of cars: home to work travel , and Taxation Ruling TR 95/34 Income tax: employees carrying out itinerant work - deductions, allowance and reimbursements for transport expenses . Therefore the reasons for decision are the same as those contained in private ruling authorisation number *************.