Motor Vehicle Fringe Benefits and Adjustments

For those private tax paying entities including companies and trusts, it’s often easier and more convenient to recognise motor vehicle benefits taken by related-parties via accounting adjustment than via reporting and lodging fringe benefit tax returns.
To record a benefit, first calculate the benefit and then pass a journal entry, recognising the benefit as revenue and the benefit taken as a debit in the director’s or beneficiaries’ loan account. Be sure to consider GST if the entity is registered.
Learn more about Car fringe benefits tax (FBT) guide for small business with this ATO guidance.
Calculate your car fringe benefit with this Car Fringe Benefit Calculator provided by the ATO.
LodgeIT does provide a Fringe Benefit Tax form if you have arms length. Learn how to prepare a Fringe Benefit Tax Form on LodgeiT.

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