Motor Vehicle Fringe Benefits

Introduction

A motor vehicle fringe benefit will only arise where a University owned motor vehicle is used for private purposes or available for private purposes.

A motor vehicle will be deemed to be used for private purposes if:

  • It is garaged or kept near the residence of the staff member
  • The motor vehicle is not located at the University and staff may use the motor vehicle for private purposes
  • Control of motor vehicle resides with the staff member outside business hours

Staff using University vehicles are required to keep records of all travel. There is a separate record keeping requirements for 'University vehicles' and 'pool vehicles'.

The University calculates the taxable value of car fringe benefits based on the records kept.

University Owned Vehicles

Users of University vehicles are required to provide Financial Services with a signed declaration of odometer readings and related vehicle details as at 31 March each year.

The users are notified in advance of the requirements and ensure that all details required are provided and that they are accurate. Details of the number of days that the vehicle was not available must be substantiated.

Staff members are to maintain records using a University supplied logbook when first assigned a University motor vehicle. In a non-logbook year odometer records must be maintained.

Faculty or Pool Vehicles

Users of faculty or pool vehicles are required to complete a logbook on a monthly basis. A copy of an approved logbook can be found at the link below. The following criteria are to be completed for FBT purposes:

  • Registration and department
  • Date of travel
  • Opening / closing odometer reading
  • Purpose of travel (business or private)

Download vehicle log sheet

Salary Packaged Vehicles

Staff members are eligible to salary package a motor vehicle using a novated lease arrangement. A novated motor vehicle lease is a three way arrangement entered into between a staff member, the University and a finance company under which the University provides a motor vehicle to the staff member as a car fringe benefit for 100% private use.

The provision of a vehicle to a staff member for their own private use will be subject to FBT. The taxable value will be recouped from the staff member as an employee contribution in each fortnightly pay period.

Taxable Value

The taxable value of a motor vehicle for FBT can be calculated by using two methods:

  • Statutory Method
  • Operating Cost Method

The University calculates the FBT liability using the Statutory Method. The taxable value is based on the motor vehicles purchase price (base value), the date it was first acquired and the total number of kilometres travelled during the FBT year.

The taxable value for Operating Cost is a percentage of the total costs of operating the car during the FBT year. The percentage is calculated by maintaining a logbook detailing business and private use of journeys for a continuous 12 week period.

Exempt Private Use

Travel deemed ‘exempt private use’ is where the travel is incidental in the course of duties of employment, or non-work related use that is minor, infrequent and irregular.

Where the University provides an employee with a car solely for the purposes of undertaking a business journey from the employee’s home on the next morning, the trip home on the preceding night will be accepted as business travel and FBT exempt.