The ATO is sending out letters to advise that 'you may have a car fringe benefits liability'.

The ATO monitors vehicle registrations and sends out these letters s a matter of course.

FBT applies to employers who provide employees with benefits, especially private use of vehicles, car parking, assistance with accommodation costs, loans, expense allowances, entertainment or gifts over $300.

If a return is required for the year 1 April to 31 March it is due and payable by 28 May, but the employer must register by 1 April.

To avoid FBT on a car, the company/employee must only claim the percentage allowed per the log book, and the private portion is charged to owner equity and not claimed as a tax deduction.   This is one reason we go through the vehicle list each year.

We expect to have forms and calculation sheets by the end of February and will contact you to determine if registration or a return may be required.