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The Australian Tax Office has again warned small businesses and tradies that fringe benefits tax (FBT) can apply to dual-cab utes, despite a common belief that these vehicles are automatically exempt.
The ATO says FBT compliance is now one of its quarterly small business priorities, urging employers to review how work vehicles are being used. Where a dual-cab ute is provided to an employee and made available for private use, FBT may be payable unless strict exemption conditions are met.
To qualify for an exemption, the vehicle must be primarily designed for work purposes, and any private use must be minor, infrequent and irregular. While travel between home and work and occasional short trips may be acceptable, regular personal use can trigger an FBT liability.
With the ATO increasing its focus on this area, businesses are being encouraged to check their vehicle arrangements and seek professional advice to avoid unexpected tax outcomes during FBT season.
#accountant #tax #fringebenefits
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