|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Business & Investment Entities
ATO Resources |
TD 2009/7:
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
fringe benefits tax year commencing on 1 April 2009?
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Please note that the PDF version is the authorised version of this ruling. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FOI status: may be released
Preamble
|
This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you. |
Ruling
1. The rates to be applied where the cents per kilometre basis is used for the fringe benefits tax (FBT) year commencing on 1 April 2009 are:
|
Engine capacity |
Rate per kilometre |
|
0 - 2500cc |
44 cents |
|
Over 2500cc |
53 cents |
|
Motorcycles |
13 cents |
Date of effect
2. This Determination applies to the FBT year commencing 1 April 2009.
Commissioner of Taxation
18 March 2009
Appendix 1 - Explanation
|
|
Explanation
3. An employee's right to use a car for private purposes constitutes a car fringe benefit under the Fringe Benefits Tax Assessment Act 1986 . Where an employee is entitled to use a motor vehicle other than a car, this gives rise to a residual benefit under that Act.
4. Taxation Ruling MT 2034 outlines a number of acceptable methods that may be used to value the benefit of the right to use an employer's motor vehicle other than a car. 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. The effect of paragraphs 15 and 16 of MT 2034 is that this method can only be used where there is extensive business use of the vehicle.
5. The cents per kilometre rates set out in this Determination are those that applied for the year commencing on 1 April 2008, reviewed to reflect the movement in the Consumer Price Index. (The rates that applied for the year commencing on 1 April 2008 are set out in Taxation Determination TD 2008/4 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 fringe benefits tax year commencing on 1 April 2008?)
Not previously issued as a draft
Previous Rulings/Determinations:
TD 93/59
TD 94/22
TD 95/19
TD 96/26
TD 97/16
TD 98/10
TD 1999/5
TD 2000/20
TD 2001/8
TD 2002/6
TD 2003/6
TD 2004/9
TD 2005/9
TD 2006/13
TD 2007/8
TD 2008/4
References
ATO references:
NO 2009/2516
ISSN: 1038-8982
Related Rulings/Determinations:
TD 2008/4
MT 2034
Subject References:
FBT motor vehicle
FBT taxable value
fringe benefits tax
private use of motor vehicles other than cars
residual benefits
Legislative References:
FBTAA 1986
TAA 1953
© Commonwealth of Australia
This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved.
Requests and inquiries concerning reproduction and rights should be addressed to Commonwealth Copyright Administration, Attorney General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca
C & P Taxation Services
133 Alexander Street
CROWS NEST NSW
Phone (02) 9965 7261
The information contained in this website is intended only as a guide for small business, and should not be relied on to prepare tax returns in accordance with Australian taxation law. It is recommended that professional advice is sought by an accountant and registered tax agent regarding GST issues, capital gains tax and tax deductions. The publishers accept no responsibility for errors, omissions or any damages caused by the improper use of this guide.