Thursday, 31 March 2016

Have you recorded your motor vehicle closing odometer reading TODAY?

Where a motor vehicle owned by a business is used by an employee for private purposes, FBT is an issue that needs to be managed.

If this is the case then as at the end of the FBT year which closed 31 March 2016 it is a general requirement that you record the closing odometer reading for the motor vehicle.

There are two calculation methods which can be used for motor vehicle fringe benefits one is the Operating Cost Method and the other is the Statutory Formula method. 

If the motor vehicle is used for a high business percentage it can mean that the Operating Cost Method results in a more beneficial outcome. 

In some cases an employee contribution can be made to offset the taxable benefit being received otherwise an FBT return needs to be lodged to the Australian Taxation Office (ATO). 

Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia. 

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