Important Update: Dual Cab Utes May Now Attract Fringe Benefits Tax (FBT)

There’s a common belief that dual cab vehicles are treated differently under FBT rules — however, recent guidance confirms that if the vehicle is available for personal use, FBT may apply.

Now is the perfect time to review how business vehicles are being used to ensure you remain compliant before the next FBT reporting period.

When FBT Does Not Apply

A dual cab ute may be exempt — but only if both of the following apply:

1. It meets eligible vehicle criteria:

• Designed to carry 1 tonne or more, or
• Designed to carry more than eight passengers, or
• Primarily designed for carrying goods (not people)

2. Private use is very limited, meaning:

• Only minor, infrequent or irregular private trips occur (e.g. occasional dump run, picking up supplies, helping someone move)

If the vehicle is used regularly for personal purposes — school runs, weekend driving, personal errands — it does not qualify for exemption.

When FBT Does Apply

If exemption rules are not met, employers may need to:

• Keep a compliant logbook
• Track private vs work kilometres
• Calculate the taxable value of vehicle use
• Lodge an FBT return and pay any amounts due
• Report the benefit through STP (where required)

Even if the vehicle qualifies for exemption, supporting documents are still required.

Record-Keeping is Critical

ATO reviews often focus on:

• Logbooks
• Odometer readings
• Vehicle policies
• Evidence of business-only usage

Without proper documentation, the ATO may apply FBT by default.

How TaxAssist Accountants Can Help

FBT rules around vehicles can get complex — especially when assessing private use or eligibility.

We can support you by:

• Reviewing vehicle eligibility
• Confirming whether usage triggers FBT
• Setting up logbooks and compliance processes
• Calculating FBT obligations and completing your return
• Advising on tax-efficient vehicle benefit options

Book a FREE Initial Consultation

If you’re unsure how these rules apply to your business fleet, we’re here to help.

Book a free consultation with your local TaxAssist Accountant today by calling 1300 513 332 or send us an online inquiry on our website. 

We’ll help ensure you’re compliant, well-prepared, and avoiding unnecessary tax.

Last updated: 27th November 2025