BIK ON company cars
#1
BIK ON company cars
Can anyone tell me if you pay Benefit in Kind on company cars in Australia as you do here? If you do what is tax liability. I have searched the tax sites for Australia but can’t seem to find anything
#2
Re: BIK ON company cars
Originally Posted by Chef69
Can anyone tell me if you pay Benefit in Kind on company cars in Australia as you do here? If you do what is tax liability. I have searched the tax sites for Australia but can’t seem to find anything
We are from Wicklow and have some very good friends in Longwood!
Andrew
#3
Re: BIK ON company cars
Originally Posted by Chef69
Can anyone tell me if you pay Benefit in Kind on company cars in Australia as you do here? If you do what is tax liability. I have searched the tax sites for Australia but can’t seem to find anything
Company cars come within the Fringe Benefits Tax regime.
This is assessed on the employer not the employee, but you'll find the FBT amount of the benefit included in your salary package so effectively you'll get less cash to compensate.
Jeremy
#4
Re: BIK ON company cars
I'm not vouching that this is totally up to date or applies to anything other than car lease schemes (novated lease) but these are the figures I've got:
Mileage (kilometreage?)
under 15000km p.a. FBT is 26.85%
15-25k FBT is 20.65%
25-40k FBT is 11.36%
>40k FBT is 7.25%.
Note, I use my car exclusively for private use - not at all for work purposes.
So if you get this sort of deal, you basically pay FBT instead of income tax on the lease cost.
For example, say your lease was $500/month, you get this income tax free (and save as much as 48.5%), instead you pay (effectively back to your employer) the FBT rate, say 26.85%. Your saving then would be 22% or about $100/month. If you do 15-25k you save up to 48.5% - 20.65% or about $140/month.
Mileage (kilometreage?)
under 15000km p.a. FBT is 26.85%
15-25k FBT is 20.65%
25-40k FBT is 11.36%
>40k FBT is 7.25%.
Note, I use my car exclusively for private use - not at all for work purposes.
So if you get this sort of deal, you basically pay FBT instead of income tax on the lease cost.
For example, say your lease was $500/month, you get this income tax free (and save as much as 48.5%), instead you pay (effectively back to your employer) the FBT rate, say 26.85%. Your saving then would be 22% or about $100/month. If you do 15-25k you save up to 48.5% - 20.65% or about $140/month.