FBT Rule Change for Cars
19 July 2013
The federal government has announced changes to fringe benefits tax (FBT) rules for cars.
Under the changes, the ‘statutory formula’ method will no longer be available for FBT liability calculations on salary sacrificed and employer supplied cars.
Instead the car fringe benefit will be determined using the ‘operating cost’ method which is more rigorous and will require a logbook to be kept to determine the percentage of business use.