Don’t be fooled into thinking that because a vehicle is a dual cab ute that it is automatically exempt from FBT and it can be salary sacrificed.
Firstly it must meet the criteria of MT2024 or being specifically listed on the ATO list of exempt dual cab utes. Secondly, private use must be limited to:
- travel between home and work
- travel that is incidental to travel in the course of duties of employment
- non-work related use that is minor, infrequent and irregular (for example, occasional use of the vehicle to remove domestic rubbish).
If the your employee’s use of the car exceeds this limit BEWARE. The car is represents a car fringe benefit and all of the private use of the car, including travel between home and work, is taken into account in determining the business percentage in the operating cost method for calculating FBT.
If no log book records are maintained, the percentage of private use will be 100%. FBT would be payable using the statutory formula.
You are not required to keep special records to be eligible for this exemption. However, you must be able to demonstrate that at all times the use of the vehicle meets the eligibility criteria. This could be done, for example, by comparing at regular periods the opening and closing odometer readings of the vehicle with the total distance you expect the employee to travel between home and work during that particular period. Alternatively, you may require more detailed records of the vehicle usage during the FBT year such as a log book together with opening and closing odometer readings.