ATO Warning!! FBT & Company Cars
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- Опубліковано 6 лют 2025
- Do you have a Motor Vehicle owned by your company?
Do you use this Motor Vehicle for private use (even a little)?
The ATO is targeting all vehicles (Sedans, utes and FBT exempt cars) that are registered in the name of a company.
This webinar will explain the tax implications to your business and what you need to do immediately.
Will use this to train my team. Thanks
use it to 'train' your clients. derek
What a time to be alive🤦♂, Thanks for the info Derick love the videos.
Love your videos Derek! Thanks mate!
Another great video. Thanks Derek!
Awesome mate, great video. Thank you for the update. great explanation
Hi Derek. Could you do a video that explains the ATO's draft practical compliance guidance on charging electric vehicles at home. I am a small business owner (company) and have purchased an EV for business use (FBT exempt as purchased under the LCT threshold). My understanding of the guidance is that you can either claim home charging OR public charging, but not both! I don't see how that is practical. Anyway I would appreciate an explanation in a future video. Many thanks.
the ATO guidance makes it clear that you can EITHER use the 'shortcut method' which is 4.20 cents per km, or you use the actual cost which will be from commercial charging stations (receipts need to be kept).
Where an EV has been charged at home and at a commercial charging station, a choice has to be made. The EV home charging rate can be used, but only if the actual costs incurred at a commercial charging station are disregarded. If the actual costs incurred are alternatively used, the shortcut method cannot be applied. derek
@derekcraignolan thanks Derek. Well, that's just crazy of the ATO to expect you to choose. How is an employee supposed to choose? There is limited public charging, so the most practical and cost-effective way to charge is at home. But if you do, you won't be reimbursed if you charge at a public charger, which if you do lots of klms you have to do to get home.
The federal govt want more people to buy EVs, but jeez, they are making it hard!
Thanks Derek. A question, PCG2018/3 - utes - single cab utes used by likes of telco contractors, plumbers or sparkies etc, which I recall as being completely exempt from FBT, does this "guidance" from ATO now indicate they are including them, or is this only dual cab utes that obviously can be used for private uses?
Edited: from a google search and read on ATO website, it looks like this does include single cab utes now, so I think I've answered my own question, assuming I read it correctly (and the correct document)
i think you did answer your own question. It does include single cab utes. It is a significant change that we need to be aware of. derek
Thank you for your lecture. For statutory method, if company purchased the sedan of $88,000 inc GST over car limit, is the cost value of staturoy method calculation $80,000? If company purchased the sedan as at 1/1/2022, item 6i for tax return 2022 is $80000/4 x 20%?
I forgot to mention, there is a pro-rata calculation based on the number of days available in the year. In your example, purchased on 1/1/22, there would be only 6 months the car was available, therefore the employee contribution would be ($80,000 x 20%) x 6/12 = $8,000 plus GST = $8,800. derek
@@TwelveAccounting Thanks Derek.
Can the employee contribution be in the form of unpaid work?
The contribution is usually in the form of cash or a salary deduction AFTER tax. Or it can also be in the form of the employee paying for some MV expenses themselves and instead of being reimbursed, it is off-set as a FBT Contribution. Derek
@@TwelveAccounting Thanks so much Derek. Love your content.
Hi, How to do journal adjust FBT back to company ?
that is bookkeeper talk for making an entry in the accounting records to show there wasn't any money actually transferred. It would be like if you received a cash sale, but didn't bank it. You would still record it as being received and make an entry to show it was taken by the owner, a journal entry. Talk to your bookkeeper. derek