Taxation Determination

TD 96/26

Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the year of tax commencing 1 April 1996?

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FOI status:

may be releasedFOI number: I 1015059

1. The rates to be applied where the cents per kilometre basis is used for the fringe benefits tax year commencing 1 April 1996 are:

2. An employee's right to use a car for private purposes constitutes a car fringe benefit under the Fringe Benefits Tax Assessment Act 1986 (FBTAA). Where an employee is entitled to use a motor vehicle other than a car, this will give rise to a residual benefit under that Act. For these purposes, in subsection 136(1) of the FBTAA, 'car' means:

'a motor vehicle (including a vehicle known as a four wheel drive vehicle), being:

(a)

a motor car, station wagon, panel van, utility truck or similar vehicle, designed to carry a load of less than one tonne; or

(b)

any other road vehicle designed to carry a load of less than 1 tonne or fewer than 9 passengers;

but does not include a motor cycle or similar vehicle.'

3. Taxation Ruling MT 2034 outlines a number of methods that may be used to value the residual benefit arising from an employee's use of an employer's motor vehicle other than a car. For example, MT 2034 applies to the calculation of the value of a benefit arising from the use of a motor cycle or a vehicle designed to carry a load of one tonne or more.

4. MT 2034 indicates that one method of valuing the benefit is to multiply the number of private kilometres travelled by employees in a vehicle during a year by a cents per kilometre rate.

5. The cents per kilometre rates set out in this Determination are those that applied for the year commencing 1 April 1995, modified to reflect the movement in the Consumer Price Index. (The rates that applied for the year commencing 1 April 1995 are set out in Taxation Determination TD 95/19.)

Commissioner of Taxation
5 June 1996

References

ATO references:
NO FBT 154; NAT 95/2688-9

Related Rulings/Determinations:

TD 93/59;
TD 94/22;
TD 95/19
MT 2034

Subject References:
private use of motor vehicles other than cars

Legislative References:
FBTAA Pt III Div 2;
FBTAA 12;
FBTAA 136(1)