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Business Advisory
Business Evolution
Personal Income TaxOver the next four years the Government will progressively replace the current statutory formula method of calculating the taxable value of a car fringe benefit with a single statutory rate of 20% to be applied regardless of the number of kilometres travelled in a year, as follows:
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Distance travelled during the FBT year (1 April – 31 March) |
Statutory rate (multiplied by the cost of the car to determine a person's car fringe benefit) |
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Existing contracts |
New contracts entered into after 7:30pm (AEST) on 10 May 2011 |
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From 10 May 2011 |
From 1 April 2012 |
From 1 April 2013 |
From 1 April 2014 |
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|
0 – 15,000 km |
0.26 |
0.20 |
0.20 |
0.20 |
0.20 |
|
15,000 – 25,000 km |
0.20 |
0.20 |
0.20 |
0.20 |
0.20 |
|
25,000 – 40,000 km |
0.11 |
0.14 |
0.17 |
0.20 |
0.20 |
|
More than 40,000 km |
0.07 |
0.10 |
0.13 |
0.17 |
0.20 |
Employers will still be able to use the operating cost (or ‘log book’) method for valuing car fringe benefits as an alternative to the statutory formula method.