The federal government has today announced that it will be abolishing the statutory formula method for the calculation of FBT (Fringe benefits tax).
“This reform will remove the statutory formula method for both salary-sacrificed and employer-provided car fringe benefits for new contracts entered into after announcement, with effect from 1 April 2014.
Existing contracts materially varied after 16 July 2013 will also fall under the new arrangements. Existing contracts that are not varied will continue to have access to the existing statutory rate throughout the contract.
All car fringe benefits for new leases will be calculated using the operating cost method from 1 April 2014.”
You can read the full “fact sheet” by Graeme Cuxson, Tax Adviser at the Office of The Hon Chris Bowen MP, Treasurer and Member for McMahon here.
For further information on how this will affect your lease, please contact Street Fleet on 1300 273 359