Are you entitled to a GST refund on the provision of the fringe benefit? If yes, the Type 1 gross-up rate applies: 2.0647. If no, the Type 2 gross-up rate applies: 1.8692.

Are fringe benefits that are reportable on employees’ PAYG payment summaries grossed-up using the Type 2 gross-up rate? Reportable fringe benefits are grossed-up using the Type 2 rate, regardless of the gross-up rate used in calculating the FBT payable on a benefit.

Car fringe benefit

Was a vehicle made available to an employee (or her or his associate) for private use and the vehicle is owned or leased by you, an associate of yours or a third party pursuant to an agreement with you? If yes, a car fringe benefit may arise.

Was the vehicle designed to carry less than one tonne or fewer than nine passengers? If yes, a car fringe benefit may arise. If no, the fringe benefit may be a residual benefit.

Was the vehicle provided a taxi, panel van, utility truck or a non-passenger road vehicle designed to carry a load of less than one tonne? If yes, an exemption from FBT applies, provided the only private use of the vehicle was for work-related travel and other private use by the employee (or the employee’s associate) was minor, infrequent and irregular.

Did the employee contribute to the running costs of the vehicle? The value of the benefit is reduced by the employee’s contribution if appropriate evidentiary documents have been maintained.

Has an election been made to use either the statutory formula method or the operating costs method? The statutory formula method must be used unless an election has been made to use the operating costs method. 

Has the valuation method been switched from the previous year? If the statutory formula method was used in the previous year and the operating costs method has been elected in this current year, has a logbook been maintained?