Ah, the infamous Fringe Benefits Tax (FBT) on a car—Australia’s way of reminding you that company cars aren’t free rides. The FBT is calculated on the "taxable value" of the car fringe benefit, which depends on the method you choose: the statutory formula method or the operating cost method.
The statutory formula method applies a flat rate (usually 20%) to the car’s cost price, multiplied by the number of days it's available for private use during the FBT year. The operating cost method looks at actual expenses like fuel, maintenance, and depreciation, then adjusts for private use percentage.
FBT is charged at the rate of 47% on the taxable value. So, if your taxable value is $10,000, your FBT bill is about $4,700. New or used car price doesn’t change the rate—just the taxable value. For precise calculations, consult the ATO or a tax professional, but for rough numbers, Tradingpost and CarShowroom can help estimate vehicle values.
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