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Fringe Benefits Tax Stakeholder Group key messages 15 May 2024

Key topics discussed at the Fringe Benefits Tax Stakeholder Group meeting 15 May 2024.

Published 3 July 2024

Program of work updates

Car parking

The ATO advised the view on the 'members of the public' issue is finalised. The ATO will update Chapter 16 of the Fringe Benefits Tax - A guide for employers in due course.

Modification to the carrying capacity of vehicles

The ATO noted that although Miscellaneous Taxation Ruling MT 2024 Fringe benefits tax: dual cab vehicles eligibility for exemption where private use is limited to certain work-related travel and Miscellaneous Taxation Ruling MT 2033 Fringe benefits tax: application of sub-section 8(2) exemption to modified cars are aged and would benefit from a style update, they are the current ATO view.

Updating the rulings is not considered a high priority. Therefore, this program of work item will be paused, pending available resources to progress an update.

Plug-in-hybrid electric vehicles - valuing fuel

The ATO updated the group on consultation matter [202405] Plug-in hybrid electric vehicles valuing fuel.

An initial meeting was held in May with members asked to submit methodologies to be reviewed in a future workshop.

Charging private electric vehicles at work

The ATO confirmed the electricity received when charging a private vehicle at work is a property benefit and would need to be valued accordingly.

Members noted the difficulty of valuing electricity in these circumstances and the different ways access to a charger may be provided.

The ATO will investigate further and invited members to submit ideas on valuation and other options to inform future guidance.

Electric vehicles - demonstrators

The ATO advised it is unable to provide a prescriptive list of factors detailing whether a demonstrator vehicle was first held and used before 1 July 2022.

When a vehicle is first held and used is based on the individual facts and circumstances.

Employers can seek a private ruling if they require advice.

Accurately determining where an electric vehicle is charged - administrative requirements

Members were advised that both commercial and home charging expenses can only be claimed when the charging location can be 'accurately determined'. Whether the home charging percentage can be accurately determined is a question of fact. Practical Compliance Guideline PCG 2024/2 Electric vehicle home charging rate - calculating electricity costs when a vehicle is charged at an employee's or individual's home provides examples at paragraphs 20 and 25.

QC102673