Reforms to car fringe benefit rules
Legislation has recently been enacted that changes the staturtory formula method for calculating the value of a car fringe benefit......
The Statutory Formula method for determining the taxable value of car fringe benefits will be reformed by replacing the current four statutory rates with a single flat rate of 20% that applies regardless of the distance travelled. This reform will only apply to new vehicle contracts entered into after 7:30pm on 10 May 2011, and will be phased-in over four years.
People who use their vehicle for a significant amount of work-related travel can still use the Operating Cost (log book) method to ensure their car fringe benefit excludes any business use.
Please contact our office on 9754 2593 if you are considering salary sacrificing a car fringe benefit, as potentially everyone involved in these types of arrangements will be impacted by this announcement.
Full details are available in the media release made by the treasurer and can be viewed by clicking on Reforms to Car Fringe Benefit Rules.