Private ruling: Fringe Benefit Tax - Car Benefit
Date of advice: 10 October 2016
Published: December 2016
Ruling period: Income Year ended 30 June 2018
Date scheme commenced: 01 July 2017

Ruling: Q1: Is the car benefit an exempt benefit? | A1: Yes.

Relevant facts and circumstances: The entity plans to purchase a new car and to provide it to a current employee. Use of the car by the employee is limited to certain work-related travel and non-work-related use that is minor, infrequent and irregular. The car is designed to carry a load of less than one tonne and for the principal purpose of other than carrying passengers.

Relevant legislative provisions: Fringe Benefits Tax Assessment Act 1986

Reasons for decision: Summary: Unless otherwise stated, all legislative references under Issue 1 are to the Fringe Benefits Tax Assessment Act 1986 . On the facts and on the basis that: • the car is provided to a current employee in respect to the employment of the employee • use of the car by the employee is limited to certain work-related travel as defined in subsection 136(1) and • non-work-related use that is minor, infrequent and irregular, and • the car is designed to carry a load of less than one tonne and for the principal purpose of other than carrying passengers, the car benefit is an exempt benefit in relation to the year of tax under subsection 8(2).