Taxable Vehicle Benefit
April 29th, 2008
Question: How can I calculate whether a car fringe benefit is a minor benefit?
I was wondering how to determine whether a car benefit provided to an employee is minor because the tax ruling on this tends to contradict itself. It says to use notional taxable value as if it was a residual benefit, but then continues on to say that we can use the cents per kilometre (which should only be used for a vehicle other than a car) or the operating cost method.
I understand that if it is classified as a minor benefit it is exempt and in turn included as business use when calculating the taxable value of the benefit using either operating cost or statutory cost method.
Answer: The easiest is probably to look at the legislation directly. I'm just working based on my memory - so maybe not 100% accurate.
We have 13 types of FB under the FBT legislation - anything that falls under minor is then exempted. Residual FB is actually one of the 13. When calculating motor vehicle benefit, but using cents per km, it actually falls outside FB - the amount needs to be disclosed by the recipient.
Strictly speaking, minor is hard - as it has to be irregular and less than $300.
Am I making sense at all?
2009 tax law changes provide saving opportunities
In 2009, numerous new and expanded deductions and credits came into being for a broad cross-section of taxpayers: College tax benefits for parents and students; energy credits for homeowners who are going green; and even tax breaks for home buyers and car buyers.
MeltDown #192 EMERGENCY ECONOMIC STABILIZATION
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