A car fringe benefit occurs when your business owns or leases a car and makes it available for your employees’ private travel. Don’t forget that directors might also be employees.
Some examples of providing a car fringe benefit include:
- Directors/Employees using the car for private travel, such as travel between work and home.
- Garaging the car at or near director’s/employees’ home, which makes it available for private use – even if it is not used privately.
If you’ve purchased a car for your business, you may receive a letter from ATO to help you work out whether you’re providing car fringe benefits. We may help you to comply with the fringe benefit obligations.