Skip to Content


Fringe benefit tax (FBT)
Te take utu hemihemi
Fringe benefit tax on specific categories of benefits: Motor vehicles

General principles for motor vehicles

The following general principles apply to fringe benefit tax on motor vehicles.

  • As long as a vehicle is available for private use (for example, travel between home and work) by your employees, including shareholder-employees, you must pay fringe benefit tax. Your liability does not depend on whether the employees actually use that vehicle.
  • There are some general exemptions and some daily exemptions from fringe benefit tax on motor vehicles.
  • Sole traders or partners in a partnership are not required to pay fringe benefit tax on a business vehicle they use privately. However, they usually record their business use of the vehicle, as they must make an appropriate adjustment in their income tax and GST returns.
Vehicle owner Available to May affect
Business Employee FBT, GST
Sole trader Sole trader Income tax, GST
Partnership Partner Income tax, GST
Company Shareholder-employee FBT, GST

 

 

 


Date published: 14 Oct 2004

Back to top



Individuals & Families

Businesses

Non-profit organisations

International