Tax on Company Car's

[Guest Jason1967]

Hello,

 

I could do with some initial advice with regards to the tax implications of taking a company car.

 

As part of my new employment package I have the option of taking a company car. If I do take this option, then my salary is reduced depending on the type / make vehicle I choose.

 

Come someone inform me what the tax implications are of taking a company vehicle (in Melbourne). For example, if I do take the company car option, then it can be used for private purposes. I am assuming that this 'benefit' will be taxed.

 

I have looked on the Aussie Tax office website - and to be honest I am not any clearer. Also, I have looked on other forums - but the comments seem to be out of date.

 

Thanks

[Guest siamsusie]

Hi Jason,

 

Just bumping your post up for you.

 

Good luck

 

 

Susie x

[Guest ezme]

The car is a fringe benefit tax which is paid by the employer. You do not have to pay this tax but what is being deducted is an employee contribution towards the car. This contribution is not tax deductible.

 

However, if you are claiming family tax benefits then an adjusted fringe benefit amount (I think is the .535%) is added on to your salary. If you car is worth $10k per year $5350 is added to your annual income for the benefit of calculating your family tax entitlements.

 

Hope this helps.