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FBT and Vehicles (Australia) Procedures

Parent Policy

Fringe Benefits Tax (Australia) Policy

A car fringe benefit will arise in respect of any day where (at any time) an employer's car is applied to a private use, or is taken to be available for the private use, of an employee or associate of an employee.

Definition of terms

FBT: Fringe Benefits Tax
ATO: Australian Taxation Office
Associate: The term "associate" is widely defined and may include a relative, a partner, a spouse or child of a partner
Taxable value: Value of the fringe benefit before it is grossed up
GST: Goods and Services Tax
Market Value: The arm’s length price payable by the general public in a normal commercial transaction
Commercial Vehicle: A panel van, or utility truck designed to carry a load of less than one tonne, or any other vehicle designed to carry a load of less than one tonne but which is not designed principally for carrying passengers
Employee's place of residence: his/her home or any other place where the employee resides or has sleeping accommodation
FBT year: is from 1 April to 31 March

Available for private use

  • A University owned vehicle will be taken to be available for the private use of an employee where:
    • The vehicle is garaged at or near the employee's place of residence
    • The vehicle is not on the employer's business premises and the employee or an associate is entitled to use the car privately or has custody or control of the car whilst not performing employment duties.

Responsibility

Employee with use of vehicle

  • Home/work travel is regarded as "private travel" and therefore any University owned vehicle garaged off the University premises overnight by an employee is subject to Fringe Benefits Tax (FBT).

Responsibility

Employee with use of vehicle

Taxable value of Car Fringe Benefits

  • Monash University has adopted the Statutory Formula Method for the calculation of motor vehicle fringe benefits.

Responsibility

Corporate Finance

Vehicle Declarations

  • Employees who take home a University owned vehicle as part of their employment conditions including those under a novation leasing arrangement are required to complete a Motor Vehicle Declaration form at the conclusion of each FBT year declaring the annual kilometres that they have travelled during that period.

Responsibility

Employee with use of vehicle

  • Where an employee of the University contributes to the running costs of the vehicle (i.e. petrol/oil), this reduces the Taxable Value of the benefit accordingly.

Responsibility

Corporate Finance

  • A Vehicle Unavailable For Private Use Declaration must be completed when an employee does not have custody of the vehicle for a full 24 hour period or more. This declaration must show the number of days unavailable and the reason.

Responsibility

Employee with use of vehicle

Pool/ Departmental Cars

  • University pool vehicles taken overnight for work related purposes are deemed to be available for private use and will therefore be regarded as a fringe benefit and subject to FBT. Vehicles taken by an employee on a particular night will be deemed as a fringe benefit for 2 days.

Responsibility

Employee using pool vehicle

  • Each Department is required to complete a Pool Car Declaration form at the conclusion of each FBT year declaring the annual kilometres that the car has travelled during that period and list the number of day's private use by employees.

Responsibility

Departmental Finance Officer

Log Book records

  • All vehicles, other than salary packaged and commercial vehicles, are to maintain standard University log books and record details of all travel (business and private), undertaken with no gaps in the kilometres recorded. These records are to be kept in the department. Logbooks are available from the Services Manager.

Responsibility

Head of Department

Exempt Vehicles

  • There are circumstances in which private use of a car may be exempt from FBT.
    An employee's private use of a panel van, utility or other commercial vehicle (i.e. one not principally to carry passengers) is exempt if the employee's private use of such a vehicle is limited to:
    • Travel between home and work
    • Travel which is incidental to travel in the course of duties of employment
    • Non-work-related use that is minor, infrequent and irregular
  • If private use becomes more than infrequent then a Log Book must be maintained for the whole FBT year.

Responsibility

Departmental Finance Officer

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