FBT Query

Joshua Easton Tax

QUESTIONHi, I would like to ask one question. We are a building materials wholesales company. If we provide the company Ute to our sales rep. who need to carry the goods to customer from time to time, does it fall into the FBT?

I don’t know the percentage of private use but from my understanding, at least driving between home and company will be the private use. Technically we need staff to do the logbook and pay the FBT if only small portion of private use.


As you are an associate of the employer technically it could fall within the ambit of FBT.

However, if the private use of the Utility is incidental there should not be a problem with this.

The ATO recently published guidelines on this matter. We also covered this in detail in issue #0094.