We provide a car to an employee to enable them to commute between home and work. During the day the same car is allocated to the pool car fleet and is used by several other employees purely for work related purposes during work hours. Is this car excluded from FBT reporting?
A pooled or shared car is a vehicle that is provided by an employer for the private use of two or more employees. The fringe benefit reporting exclusion operates where the provision of the vehicle by the employer results in a car benefit, or a benefit that would be a car fringe benefit if it were not an exempt benefit (e.g. a minor benefit), for more than one employee during the FBT.
It is not necessary that the sharing or pooling of the car occur simultaneously between current employees. The requirement is that a car fringe benefit, or a benefit that would be a car fringe benefit if it were not an exempt benefit, arises in respect of the car in regards to two or more employees where the usage of the car is under the direction or consent of the employer.
The business use travel by other employees during work hours does not constitute private use. As such, in our view the car is NOT a pooled car as the car is only being provided for the private use of one employee only.