FBT on the private use of a motor vehicle

Fringe benefit tax (FBT) is payable for any whole or part day (24-hour period) a motor vehicle is available for private use.

The default FBT day starts from midnight, unless an alternative start time, i.e. 9am is selected. If a vehicle is taken home overnight, it will generally incur two days’ FBT.

For example, where an employee takes a work car home at 6pm and returns it to their employer’s premises the following day at 2pm, the employer will have to account for two days’ FBT.

Electing an alternative start time applies to all motor vehicles an employer files an FBT return for. The start time will apply for at least two years. In some situations, changes to the alternative start time during the two years may be considered.