Employee Business Cars Tips & Traps Factsheet
The provision of company cars to employees is a regular practice across the Australian business landscape. Granting employees’ access to company cars is treated by the ATO as a ‘non-cash benefit’, more commonly referred to as a fringe benefit. Fringe benefits provided to employees and/or their associates are subject to Fringe Benefits Tax (FBT), which is currently set at a flat 47% of a benefit’s ‘taxable’ value.
Learn more from our article All you need to know about car fringe benefits