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All about cars (and tax!)

In my experience, people fall into one of two categories when it comes to cars. There’s me – I couldn’t care less what my car looks or performs like as long as it gets me to where I need to go. In a crisis, I’m able to check the oil and change a tyre, but other than that, I’m just not interested. At the other extreme are some people I know who drive very fancy (think expensive) cars, like to know exactly how it works and how it’s made and take pride in being able to change a tyre in under 3 minutes!

But, when it comes to cars and tax, we all follow the same rules. Today, we’re going through what tax deductions are available for motor vehicles as well as how you can claim eligible GST input tax credits. Continue reading “All about cars (and tax!)”

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Cars, cars, cars and fringe benefits

By far and away the largest category of fringe benefits provided in Australia are cars. In the 2016 year, the Australian Taxation Office indicated that the total taxable value of all cars provided to employees in the year was $1.3 billion. This makes car benefits a significant contributor to tax revenue in Australia. But just because you have provided your employee with a motor vehicle does not automatically guarantee that there is fringe benefits tax (FBT) to pay.

So let’s go through an overview of when your business might be liable for FBT on the vehicles they provide. Continue reading “Cars, cars, cars and fringe benefits”