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On the 10th of May 2011, the 2011/12 Federal Budget was released with a focus on Fringe Benefits Tax as it relates to motor vehicles.
Changes were made by the Federal Government to simplify the treatment of FBT for the future, and remove the adverse environmental incentives for people to drive their vehicle further than they need to, in order to obtain a larger tax concession.
This reform applies to new contracts and new commitments entered into after 7:30pm (AEST) on the 10th May 2011, and is to be phased in over four years.
From 1st April 2012, if you enter into a new lease or make changes to your existing lease that results in a ‘new commitment’ the FBT Statutory Rate will increase to 17% if you travel between 25,000 kms and 40,000 kms and 13% if you travel over 40,000 kms. For those travelling under 25,000 kms the rate will remain at 20%.
| Tags: Tax |
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The information on this site is of a general nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.
The financial planning services are provided by Medical Financial Pty Ltd trading as Medical Financial Planning (AFSL 506557)
