Could Your Employee’s Personal Trips Cost You FBT?

Offering non-cash benefits, like allowing an employee to use a company vehicle, is a common way to reward and retain staff. However, when that vehicle is used for private purposes, it can trigger FBT obligations — even if the vehicle is only available for private use and not actually driven.

What Counts as Private Use?

Private use covers any travel not directly related to your employee’s work, including:

• Weekend or holiday trips (e.g. beach or camping)
• School drop-offs or pick-ups
• Running personal errands
• Transporting family or friends
• Parking the vehicle at home overnight (even for “security reasons”)

While certain exemptions may apply depending on the vehicle type and the extent of private use, understanding what’s covered — and what isn’t — is crucial to staying compliant.

What Employers Need to Do

• Check for exemptions: Some vehicles may be exempt if private use is minor or incidental.
• Keep records: Accurate logbooks, odometer readings, and usage notes are essential — even for exempt vehicles.
• Calculate your liability: FBT can be worked out using specific calculation methods and valuation rules.
• Lodge and pay on time: FBT returns are generally due by 21 May (or 25 June if lodged through a registered tax agent).
• Report correctly: Any reportable fringe benefits must appear on your employees’ income statements or payment summaries.

Keeping up to date with your FBT obligations helps you avoid penalties and stay compliant with the ATO.

How TaxAssist Accountants Can Help

Understanding and managing FBT can get complex — especially when it comes to vehicle use, exemptions, and record-keeping requirements. That’s where our team of registered Tax Agents can help.

We can:

• Review your current vehicle use and identify potential FBT risks
• Advise whether exemptions apply to your business
• Calculate your FBT liability accurately
• Prepare and lodge your FBT return on time
• Ensure your employee records meet ATO standards

Don’t leave your FBT compliance to chance — let us take care of the details so you can focus on running your business.

Contact your local TaxAssist Accountant today by clicking here to discuss your FBT obligations and make sure your business is covered.

Last updated: 29th September 2025