How is Fringe Benefit Tax (FBT) calculated on a car when packaged through salary?
A. FBT is a tax that is paid on a fringe benefit such as packaging a car when some of the car is not used for business use. If the statutory method is used then the more total kilometres travelled the better as the level of tax levied is reduced. If the car travels less than 10,000 kilometres a year then significant FBT will be levied. Another method to calculate FBT is the actual business percentage. It is important to speak with a Australian Investment Professionals Financial Manager regaring FBT as this is a very complicated area.
