We get many questions from clients asking what types of vehicles are exempt from FBT. Generally, a vehicle will be exempt from FBT if any of the following applies:
- The vehicle is designed to carry a load greater than one tonne
- The vehicle is designed to carry nine or more occupants
- The vehicle is a single cab ute, taxi or panel van and the employee’s private use of the vehicle is limited to work-related travel (which includes travel between home and work) and other private use by the employee or their associates that is minor, infrequent and irregular.
- The vehicle is “goods-carrying vehicle” and therefore not designed for the principal purpose of carrying passengers (some dual cab utes and 4WDs) and the employee’s private use of the vehicle is limited to work-related travel (which includes travel between home and work) and other private use by the employee or their associates that is minor, infrequent and irregular.
A vehicle is regarded as a “goods-carrying vehicle” and therefore not principally designed for carrying passengers if the total passenger weight is less than 50% of the carrying capacity of the vehicle for FBT purposes.
The total passenger weight is determined by multiplying the number of seats by 68 kg.
The carrying capacity of the vehicle for FBT purposes is determined by subtracting the Kerb-side Mass from the Gross Vehicle Mass.
If you have any questions about whether your current or proposed vehicle is exempt from FBT, please contact our office.
