Do I need to pay fringe benefits tax for providing a work car to staff?

Providing a work car to agency staff is undoubtedly a great incentive.

However, the Australian Taxation Office (ATO) is reminding agency owners that they may need to pay fringe benefits tax (FBT) if they're providing a car to employees for their private use.

You make a car available for private use by an employee on any day that the car is either:

• actually used for private purposes by an employee
• available for the private use of the employee.

• used to travel to and from work
• not at your premises and they are allowed to use it for private purposes
• garaged at their home - regardless of whether they have permission to use it for private purposes.

• a sedan or station wagon
• any other goods-carrying vehicle with a carrying capacity of less than one tonne, such as a panel van or utility (including four-wheel drive vehicles)
• any other passenger-carrying vehicle designed to carry fewer than nine passengers.

Next steps:

• Register for an Employer: Introduction to car fringe benefits session
• Registering for FBT

• Car fringe benefits
• Fringe benefits tax - exempt motor vehicles
• Reporting, lodging and paying FBT

Find out more facts on Agency Practice.