You may not be an accountant, but you need to know about Fringe Benefits Tax and how it applies to a novated lease. (Especially on electric cars)
FBT applies to many non-cash benefits an employee gets from their employer, such as entertainment, living-away-from-home expenses, and the private use of a company-owned car. The Australian Tax Office says that “a benefit” arises when a work vehicle is used for private travel by an employee.
You’ll be using your novated lease vehicle for private trips (because that’s what we do with cars) so you’ll be getting “a benefit” which will attract FBT.
If you start talking about FBT everyone’s either an expert, or an ostrich with their head in the sand. That’s because the calculation sounds complicated and varied depending on the type of organisation you work in.
For the detail orientated people you can get the what, why and how from the ATO website.
To learn more about novated leasing and FBT, download a copy of the 2024 Car Leasing Guide.
