Changes to FBT in Relation to Private use of Utes (vans) by ATO. Will resale be affected?

Dr Prepper on 08/02/2018 - 11:41

Australia's list of top selling cars heavily feature utes like the Hilux and Ranger. Private use of utes is a bit of tax rort and I even admit I used my previous van and ute heavily for private non business travel.

Does anyone here have a good understanding of the way that the ATO is going to assess utes in relation to FBT? Is it still worth buying a ute (or van) to save FBT if you are going to be using the ute for personal use?

Will this change if private use of utes are now going to be assessed differently by the ATO?

Utes always had solid resales. Will ute resale values drop as a result of the changes to the way the ATO is assessing private use tax rort it formerly turned a blind eye to?

My relatives in Europe suffered resale drops when similar tax changes were made in respect to private use of vans and utes.

I am not sure if this is a financial /tax question or a Auto question.

Poll Options

  • 7
    resales will crash;
  • 0
    resales will not be affected. Aussies love 2nd hand utes;
  • 0
    Resales will increase( demand for 2nd hand utes will go up);
Automotive

Comments

  • Davo1111 on 08/02/2018 - 12:53

    EDIT: wiped my comment as i dont know enough about it

  • enzioFirenze on 08/02/2018 - 12:59

    I didn't understand much of what you were saying OP, I bought a Hilux once and had to pay an arm and leg for rego/insurance, got rid of it ASAP, it was only for personal use offroad.

    • Dr Prepper on 08/02/2018 - 13:05

      High ute sales in Australia were always due the fact that businesses did not pay fringe benefits tax for private use by their staff. The ATO turned a blind eye to private use of utes in the days when the Govt. were trying to prop up locally manufactured ute sales. Now that we do not make utes the ATO is apparently going to be putting private ute use under microscope.

      • Baysew on 08/02/2018 - 13:12

        Have you got a link to these ATO changes?

  • Dr Prepper on 08/02/2018 - 13:15
    -1

    Mod Edit [Link removed as requested by OP]

    https://www.wheelsmag.com.au/news/1801/tax-changes-could-aff…

  • whooah1979 on 08/02/2018 - 15:42

    purchase a second vehicle for ms pepper and put your name as the registered operator for both vehicles.

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