Issue
Is the service of a chauffeur a car benefit as defined in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?
Decision
No. The service of a chauffeur is a residual benefit as defined in subsection 136(1) of the FBTAA and is not a car benefit.
Facts
A company owns and uses a car in its business.
The company allows its employee to travel in the car for business and private purposes.
The employer provides the service of a chauffeur to the employee.
The chauffeur drives the car at the employee's direction for business and private purposes.
Reasons for Decision
Is the service of a chauffeur a car benefit?
The term car benefit, as defined in subsection 136(1) of the FBTAA, 'means a benefit referred to in subsection 7(1)'. A benefit referred to in subsection 7(1) of the FBTAA is the application or availability of the car for private purposes.
The employee is provided with the service of a chauffeur. The chauffeur drives the car at the employee's direction. The service of a chauffeur is not an application of a car to a private use by the employee. The service of a chauffeur is not the availability of a car for the private use of the employee.
The service of a chauffeur is not a benefit referred to in subsection 7(1) of the FBTAA and is not a car benefit as defined in subsection 136(1) of the FBTAA. Accordingly, the car benefit provisions (under Subdivision A of Division 2 of Part III of the FBTAA) do not apply in relation to the service of a chauffeur.
Is the service of a chauffeur a residual benefit?
The service of a chauffeur is a benefit as defined in subsection 136(1) of the FBTAA.
The benefit does not fall within any of the categories of benefits covered by Subdivision A of Divisions 2 to 11 (inclusive) of Part III of the FBTAA, such as car benefits. Accordingly, the benefit is a residual benefit per section 45 of the FBTAA, and as defined in subsection 136(1) of the FBTAA.
Amendment History
Date of Amendment Part Comment 29 October 2024 Reason for Decision Business line Added section 45 Updated business line details 28 July 2017 All Minor punctuation and style amendments.
Date of Amendment | Part | Comment
29 October 2024 | Reason for Decision Business line | Added section 45 Updated business line details
28 July 2017 | All | Minor punctuation and style amendments.