fbt motor vehicle cost base

In FBT land, a car’s base value is the GST-inclusive purchase price you use under the statutory formula method.

It generally includes GST, luxury car tax, dealer delivery and factory/dealer‑fitted accessories, but excludes registration and stamp duty.

If it’s leased (hello, novated), use the lessor’s cost price on the same basis; second‑hand cars use what you paid, with the same inclusions/exclusions.

Add accessories later and the base value goes up, and after four full FBT years you get a one‑third reduction from the start of the next FBT year.

Taxable value is then broadly 20% of that base value (pro‑rated for days and trimmed by any after‑tax employee contributions), while the operating cost method ignores base value entirely and uses actual running costs instead.