Where a vehicle is used for full private use successively by different employees in an FBT year, does each employee have a reportable fringe benefit?
Our CEO left after 6 months of the FBT year, in October 2019. He had full private use of a work-provided motor car. He returned the car on the conclusion of his employment, and it was the held for the next CEO, and used occasionally as a pooled vehicle. A new CEO commenced January 2020 and took over full private use of the car. For the first and second CEOs is the vehicle use a reportable benefit, even though for both individuals it was for a part of the FBT year only? The taxable value attributable to each individual exceeds $2,000.
A pooled car benefit is:
- a car benefit that is a car fringe benefit, and
- the car benefit arises for more than one employee at the employer’s direction or with the employer’s consent.
Based on the facts you have provided, the vehicle is a pooled car and is therefore not a reportable fringe benefit of either CEO.