A reminder that the Fringe Benefit Tax (FBT) year for 2014 ends today on 31 March 2014.

Motor vehicles that are owned by an employer and made available to an employee (or an associate of the employee) for private purposes may be subject to FBT. There is an exemption for minor use by an employee of certain commercial vehicles such as panel vans, and utes designed to carry a load of less than 1 tonne.

Furthermore car expenses reimbursed by the employer for a motor vehicle owned by an employee may also be subject to FBT. You will need to ensure that a closing odometer reading is obtained today for each of the motor vehicles owned by your relevant entities.

These odometer records will then be used to determine the total distance travelled during the FBT year. A log book may also be used to establish business usage of a motor vehicle. A log book generally has to be completed once every five years, and must contain information such as the date, the odometer readings at the start and end of each journey, the distance travelled, and the purpose of the journey. This must be recorded for a 12 week period.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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