company car tax benefits

Ah, the elusive company car tax benefits—Australia likes to keep it spicy. Essentially, company cars can be a neat tax dodge if you’re an employee or business owner, but the ATO makes sure you don’t get away scot-free. Employees usually face Fringe Benefits Tax (FBT), which the employer pays, but it can be structured to your advantage.

Key points:

• Employers pay FBT on the taxable value of the car benefit.
• Using the car for business reduces the taxable value.
• Logbooks and operating cost methods help calculate deductible amounts.
• Salary packaging can reduce your taxable income.

Check ServiceCentral for detailed guides, or chat to your accountant before you get too excited about that shiny new ride.