Jan 8 2015
Odometer Readings for Novated Leases
If your employees are salary packaging a novated lease, it is essential that they provide us with up to date odometer readings. This is to assist us to identify if they are not on track and advise them of the travel that is required to minimise any impact of Fringe Benefits Tax.
Any FBT due on their novated lease is finalised on the 31st March with a closing odometer reading. If they have not achieved their nominated statutory bracket a liability may be due, please refer to the table below to see the required travel for each Statutory %.
Please encourage your staff to lodge their novated lease odometer reading, it is quick and easy via our smartphone apps or by logging into My Statements at www.remunerator.com.au
ATO Changes to Statutory Rates for Motor Vehicles
As a result of the Federal Governments Henry Tax Review announcement in 2011, the 2014-15 FBT year has seen the end to statutory brackets that applied to distances travelled.
This means that all novated leases entered into after the 10th May 2011 will be charged FBT at the Statutory Rate of 20% regardless of distances travelled from 1 April 2014.
Your Employees are still encouraged to provide us with an end of FBT year reading however, should this not be received, the last known reading will be used for reporting purposes.