The upcoming federal budget is likely to see an increase to FBT paid on company cars. This will mean an increase in costs to businesses who currently allow employees to use business cars for private use as well.
Currently the fringe benefits tax payable on business cars reduces the further the vehicle is driven in a tax year.
These tax reductions are likely to be reduced in the upcoming budget.
The government will gain in 2 ways by doing this – an increase in tax revenue and also helping it meet it’s climate change responsibilities
. This will definitely hurt the bottom line of small businesses who are already facing huge increases in fuel costs.
Now they will be able to claim less of those fuel costs as a deduction!
Is this the government putting environmental issues in front of families welfare?
For more info on FBT see our FBT page: