How does the distance travelled per annum or yearly kilometres work?
• Fringe Benefits Tax (FBT) is calculated using the statutory formula method. This method assesses the kilometreage travelled in each salary packaged vehicle held during the FBT year (1st April to 31 March of the next year) on a pro rata basis against several defined brackets of distance travelled ie: 0 – 14,999 km; 15,000 – 24,999 km; 25,000 – 40,000 km and Over 40,000 km. • If you commence packaging a vehicle on 1st September 2007 then the pro rata km required at 31st March 2008 to be just in the 25,000 to 40,000 km bracket is 14,550 km (vehicle held for 213 days out of possible 366 days during FBT year – leap year). • The distance travelled per annum or yearly kilometres is a combination of private and any business kilometres travelled or expected to be travelled.
