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|
|Sole trader||Sole trader||Income tax, GST|
|Partnership||Partner||Income tax, GST|
Date published: 14 Oct 2004