Company provided car and novated lease cars

• 

  JimmyF on 19/10/2024 - 08:55

  +2

  So I’ll starting a new job and the company will be providing me a car (noting that the car is not part of my contract).

  If its a pure company car for your job, then no FBT as such as the company will cover all that.

  I’ve been told that I’ll be hit with FBT i go down this route?

  But FBT applies to novated leases for personal cars etc like the PHEV for the wife.

  Sorry total tax noob here, does this mean I will get hit with a tax bill come EOFY?

  Pretty much, have a read over https://www.ato.gov.au/businesses-and-organisations/hiring-a…

  Leasing a car is never 'free' and all about lowering your taxable income in exchange for something.

  • 

    MS Paint on 19/10/2024 - 09:01

    +2

    PHEV can be FBT free

    • 

      JimmyF on 19/10/2024 - 09:06

      +2

      True, thinking the exemption was lifted already, but that was some gov rebates.

• 

  freefall101 on 19/10/2024 - 17:12

  So this is probably a question I really should be asking a tax adviser. But being a rightward I’m hoping to get some answers from this wonderful community…..

  FYI, telling the ATO "but the internet told me…" will not help you avoid a tax bill.

  So I’ll starting a new job and the company will be providing me a car (noting that the car is not part of my contract).

  FBT applies on a car whether it's in a contract or not. Has your employee told you what the conditions on the car are and whether they'll be footing the FBT bill? How you track milage? Whether you can take the car home or if it's 100% business use only and taken from the office each day?

  At the same time I’m looking in a new car (PHEV) for the wifey using an novated lease arrangement.

  What has your new employer said about their novated lease offerings? Remember, you need them to ok it.

  Your answer is "talk to an accountant" because you haven't supplied anywhere near enough detail.

• 

  Wiadro on 19/10/2024 - 23:22

  Unless they are paying the fbt on your behalf, or they use the 20% stat method, it will be a complete headache for everyone involved.