Question

Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1 May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikita’s usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges. For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometers in the car and incurred expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs. Calculate the Fringe Benefits Tax Liability for Perisher.

Answer 1

Answer

Calculation of Fringe Benefit Tax liability for Perisher Pty Ltd
Fringe benefit tax means the tax which charged on employer for the benefits that are provided by the employer to the employee
Calculation of benefit provided to employee
Particulars	Amount (in $)
Price of Car at the time of purchase	44000
Add:Delivery charges	2000
Add:Repair expense	770
Total benefit provided to the employee	46770
Fringe benefit tax rate is	30%
To find out the tax liability,multiply this 30% with the benefits provided to the employee(46770)
Fringe benefit tax is ( 46770 x 30%)	$14031