Glossary

Car

A motor vehicle (except a motor cycle or similar vehicle) designed to carry a load of less than 1 tonne and fewer than 9 passengers.

Commercial Vehicle

Generally a commercial vehicle would be a panel van or utility that has the capacity to carry a load of 1 tonne or more.

Available for private use

The circumstances in which a car is either used or deemed to be available for the private use of an employee or an associate will generally arise where any of the following situations apply:

• The car is used by the employee or associate for private purposes;
• The car is garaged at or near a place of residence of the employee or associate;
• The car is not parked on the business premises of the employer;
• The employee or associate has custody and control of the car while the employee is not performing duties of their employment.

Actual Car Expenses

Expenses that can be identified e.g. petrol, registration, insurance, repairs etc. Please note this does not include calculations based on the ATO's set rate per kilometre method.

Principal purpose of carrying passengers

Single Cab and Dual Cab Utilities
When determining whether a car with carrying capacity of less than 1 tonne is principally designed for carrying passengers, the number of passengers (including the driver) that the vehicle is capable of carrying is multiplied by 68 kilograms. This figure is then expressed as a percentage of the net carrying capacity of the car (gross vehicle mass less kerb side weight) and if it is 50% or greater, the car is considered to be principally designed for carrying passengers and is not eligible for an FBT exemption.

Vehicles other than Single Cab or Dual Cab Utilities (e.g. four-wheel drives)
Regard should be had to factors, including but not limited to:

• The appearance and presentation of the vehicle
• Any relevant promotional literature
• The emphasis evident in marketing
• The vehicle's specifications
• Load carrying capacity
• Passenger carrying capacity

The greater the number of factors that indicate a vehicle is designed for carrying passengers, rather than commercial use, the more likely it will be that the vehicle is designed for the principal purpose of carrying passengers.

Entertainment

Entertainment for FBT purposes is generally categorised into the following:

• Meal Entertainment – entertainment by way of food or drink (or accommodation or travel to do with providing entertainment by way of food or drink) e.g. Christmas party, business lunches and drinks.
• Recreation – entertainment by way of recreational activity (or accommodation or travel to do with providing entertainment by way of recreation) e.g. corporate box, sporting days.

Associates

Spouse and/or children and includes relatives and other related entities

Recreation gifts
eg. tickets to theatre, movie or sporting event

Private expenses
eg. mobile phone (if not used primarily for business use), home/desktop computer, home telephone, health insurance premiums

Commercial car parking station
A commercial car parking station is one that charges a fee for all-day parking, is permanent and is operated as a business.

All-day parking means a single continuous period of 6 hours or more in daylight period. The parking station does not need to be managed by a parking operator, as long as it displays two or more of:

• clear signage visible from street advertising paid parking
• mechanisms to control who enters and exits, including boom gates, 'pay and display' etc
• more than nominal fee charged

For example, could apply to shopping centre and hospital car parks.

Loan
Loan provided to an employee and no interest or low rate of interest charged (under 7.77% for 2024)

Business Stock
Property you sell in the ordinary course of business (unless provided and consumed on employer's premises)

Discount Price
Less than the arm's length purchase price of the goods to you or the market value of the goods (whichever is lesser)

Additional Cost

Costs in addition to the reasonable cost of accommodation and food and any other compensation for disadvantages associated with living away from home

Living Away from Home
Living away from their usual place of residence (where the employee maintains their usual place of residence, i.e. does not rent it out)

Service
In house = services you provide to the public in the ordinary course of business, eg. professional law advice
External = services you don't provide or you arrange for your employees, eg. arrange solicitor to provide discounted services to your employees

Zero or low emissions vehicle

A vehicle is a zero or low emissions vehicle if it satisfies both of the following conditions:

a. It is a:

• Battery electric vehicle
• Hydrogen fuel cell electric vehicle
• Plug-in hybrid electric vehicle - but won't be eligible for exemption from 1 April 2025 onwards

and

b. It is a car designed to carry a load of less than 1 tonne and fewer than 9 passengers (including the driver).

Note: Motorcycles and scooters do not qualify for the exemption.