In 2011, Treasurer Wayne Swan announced an important change to the Statutory Formula calculations for FBT on motor vehicles.
Wayne advised “The Government will reform the current ‘Statutory Formula’ method for determining the taxable value of car fringe benefits by replacing the current statutory rates with a single rate of 20 per cent that applies regardless of the distance travelled.”
“This reform will apply to new contracts entered into after 7.30pm (AEST) on 10 May 2011, and will be phased in over four years. There are no changes to Novated leases entered into prior to 7.30pm (AEST) 10 May 2011.
Listed below is the breakdown of the table which breaks down the new Formula’s:
Distance travelled during the FBT year
(multiplied by the cost of the car to determine a person’s car fringe benefit)
(1 April – 31 March) Statutory rate
| Pre announcement | From 10 May 2011 | From 1 April 2012 | From 1 April 2013 | From 1 April 2014 | |
|---|---|---|---|---|---|
| Less than 15,000 km | 26% | 20% | 20% | 20% | 20% |
| 15,000 to 24,999 km | 20% | 20% | 20% | 20% | 20% |
| 25,000 to 40,000 km | 11% | 14% | 17% | 20% | 20% |
| Over 40,000 km | 7% | 10% | 13% | 17% | 20% |
