ATO luxury car tax cost base
A car fringe benefit is calculated by either of the Operating Cost or Statutory Formula methods, or in the case of expense reimbursements the private use portion of the expense.
The taxable fringe benefit is reduced by the amount of any employee contributions.
Under the operating cost method, the taxable value of the fringe benefit is based on a private percentage of the vehicle’s total operating costs which include:
To determine the business/private percentage under the operating cost method, a log book is required to be kept over a continuous 12 week period and renewed after 5 years, or earlier if required. The log book is to be submitted to the employer.
The vehicle cost for depreciation purposes includes dealer delivery charges, GST and customs duty if applicable.
The cost also includes non-business accessories, and the depreciation cost limit does not apply. (See TR 2011/3)
The diminishing value depreciation percentage rate to be used is determined from the date of purchase according to the following table:
|Date purchased||Depreciation Rate
(Diminishing Value Method)
The interest component of an owned vehicle cost is determined by a benchmark interest rate which is adjusted and announced annually in a Tax determination before the beginning of the FBT year.
Taxable value = [Total vehicle costs (including depreciation and imputed interest where the vehicle is owned)] x Private use percentage LESS Employee contributions
The statutory formula method determines a taxable value from a statutory percentage of the car’s cost. The percentage is based upon the total number of kilometres travelled during the year.
This method requires that the following data be obtainedi:
The taxable value of the benefit is reduced by the amount of employee contributions.
The statutory percentage to be applied will depend on whether the provision of the car benefit is under a pre-existing commitment on or before 10 May 2011.
|Under 15, 000||26%|
|15, 000 to 24, 999||20%|
|25, 000 to 40, 000||11%|
|Over 40, 000||7%|
You might also like
Volkswagen Fastback, 60's Print ad. Full Page B&W Illustration (luxury cars) Original Vintage 1969 Look Magazine Print Art
Highland 4560500 Pacific Coast Highway Gray Luxury Carpet Floor Mat - 4 Piece
Automotive Parts and Accessories (Highland)
Borch Fashion Luxury Multi-function Crazy Horse Leather Protective Light-weight Folding Flip Smart Case Cover for Ipad Air (Red)
Lufei® 12000mah Solar Panel Portable Charger Power Bank Outdoor Camping External Backup Battery with Dual USB Port and Built-in LED Flash Light for Iphone 6 5s 5c 5 4s 4, Ipods, Ipad 2 Air Mini, Samsung Galaxy S5 S4, S3 I9300, Note 2, Note 3; HTC One, Sensation, EVO 4g, Thunderbolt, 8x, Droid Dna; Nokia Lumia 920, 520, 1020 and Other Android Smart Phones, Tablets, Mp3, Mp4 with Micro USB
Lawn & Patio (Lufei)
ZippyDoritEduard Galaxy S3 Well-designed Hard Case Cover Simple Volkswagen Red Cars Protector
Wireless (Bancroft Selma Cary)