Changes to FBT arrangements
The Prime Minister and the Treasurer have announced that the Government will change the FBT arrangements relating to motor vehicles as part of the saving measures to fund the proposed changes to the Emissions Trading Scheme.
The current statutory formula method will no longer be able to be used for vehicles purchased after 16 July 2013, with effect from 1 April 2014, resulting in the operating cost method being required to be used to calculate the amount of the fringe benefit.
The changes will result in all employees, whose vehicles fall within the new rules, now being required to document their business use by preparing a log book. Existing contracts will continue to be able to access the statutory formula method unless a material change to the car fringe benefit occurs.
To learn how these changes may impact your circumstances call PPT on (03) 5331 3711.
DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
