Use GST-inclusive amounts where appropriate – do not show the actual value of the cars in the 'Gross taxable value (a)' column.
Employee contributions include:
- amounts the employee pays directly to you for using a car
- any car operating costs (for example, fuel) the employee has paid.
The total operating costs you use for calculating the fringe benefits taxable value of car fringe benefits are different from those you use for income tax purposes. Also, the income tax depreciation cost limit does not apply for FBT purposes.
Example 11: Taxable value of car fringe benefits using the operating cost method
You have a car with $10,000 in total operating costs for the year ending 31 March 2017. The employee who uses the car maintains a logbook. Based on the logbook and other usage patterns, you estimate the percentage of private use to be 30%. The employee has not made any contributions during the year.
The calculation of the taxable value for the car using the operating cost method is:
($10,000 x 30%) = $3,000
You would write at item 23: