Novated Lease.

[baboon]

  Mick Molloy said:

NOVATED LEASE'S are not FBT exempt.. according to ATO phone call and Fleet Australia. Only company leases..

ATO  

<{POST_SNAPBACK}>

Yep that's what my smartsalary said too! Pack-o-bastards

[Dagabond]

  Mick Molloy said:

MORE INFO HERE

Crewmans are OK.... If you like that sort of thing...

UPDATE:

NOVATED LEASE'S are not FBT exempt.. according to ATO phone call and Fleet Australia. Only company leases..

ATO  

<{POST_SNAPBACK}>

Read from here down, letter from the deputy commissioner of taxation to forrestd stating that FBT IS exempt under a Noveated Lease....

[tab]

  Mick Molloy said:

FBT consequence of full novations

A car fringe benefit arises where you are the lessee of a car that is provided for the private use of an employee or associate of the employee. Cars under a full novated lease are subject to the same car fringe benefit valuation rules as other cars you lease.

I am sure for a business lease this clears it up... but for a novated lease I am still not sure....

What do you guys think??

<{POST_SNAPBACK}>

Did you actually read what you quoted Mick? Subject to the same valuation rules?

[Mick Molloy]

  tab said:

  Mick Molloy said:

FBT consequence of full novations

A car fringe benefit arises where you are the lessee of a car that is provided for the private use of an employee or associate of the employee. Cars under a full novated lease are subject to the same car fringe benefit valuation rules as other cars you lease.

I am sure for a business lease this clears it up... but for a novated lease I am still not sure....

What do you guys think??

<{POST_SNAPBACK}>

Did you actually read what you quoted Mick? Subject to the same valuation rules?

<{POST_SNAPBACK}>

I read that but Fleet Australia say no you must pay FBT... I now have no idea...

Mick<<<<< Calling ATO Again

[tab]

When dealing with the ATO you have to tell them what the answer is and then they'll confirm it - it's no use asking an open question with the morons

[wados]

just a quick question im on a chattel mortgage, I own my own business, and do alot of K's a year, just wondering what would be best for me as im looking at getting a new work car at the end of the year.

Would I be better of on the chattel or moving on to something else

[Mick Molloy]

  wados said:

just a quick question im on a chattel mortgage, I own my own business, and do alot of K's a year, just wondering what would be best for me as im looking at getting a new work car at the end of the year.

Would I be better of on the chattel or moving on to something else

<{POST_SNAPBACK}>

The Thick Plottens

From all my reading and discussions with the ATO and Fleet Australia the answer is YES you can claim FBT excemption but if you fall outside the stick limits on the useage you can get into big problems and $$ as the following rules will then apply...

http://www.ato.gov.au/businesses/content.a...4.htm&page=6&H6

47 cents per k over the stated to and from work... ouch

[tab]

but....that applies to "motor vehicles other than cars". Unless your utility carries more than 1 tonne it is still classed as a "car"

Isn't this fun?

[wados]

I might add that I drive a ford courier single cab for work and work only

[Ford Grunt]

  tab said:

but....that applies to "motor vehicles other than cars".  Unless your utility carries more than 1 tonne it is still classed as a "car"

Isn't this fun?

<{POST_SNAPBACK}>

tab dead on the money.

Utes less than a tonne are treated as cars unless you decide to treat them as FBT exempt.

This means you need to follow the exemption rules: ie to & from work travel is exempt but private use must be minor, infrequent and irregular travel. The ATO also don't clearly define the meaning of minor, infrequent and irregular travel, it appears to purposing be left vague, so it can be considered on a case by case basis by the ATO.

If you fail, the exemption (or don't apply it) therefore it will be treated as a normal car fringe benefit not a residual benefit (see Mick Molloy's link).

Cheers,

FG