Fringe benefits tax: rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing 1 April 2025

The rates to be applied where the cents per kilometre basis is used to calculate the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car, for the fringe benefits tax (FBT) year commencing 1 April 2025, are outlined in Table 1 of this Determination. Table 1: Cents per kilometre rates for FBT year commencing 1 April 2025 Engine capacity Rate per km 0–2500 cc 69c Over 2500 cc 80c Motorcycles 20c

For previous years' rates, see Fringe benefits tax – rates and thresholds .

This Determination applies to the FBT year commencing 1 April 2025.

An employee's right to use a car for private purposes constitutes a car fringe benefit under the Fringe Benefits Tax Assessment Act 1986 (FBTAA). Where an employee is entitled to use a motor vehicle other than a car, this gives rise to a residual benefit under the FBTAA. For these purposes, pursuant to subsection 136(1) of the FBTAA, which refers to subsection 995-1(1) of the Income Tax Assessment Act 1997, a 'car' means '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', with a 'motor vehicle' being defined as 'any motor-powered road vehicle (including a 4-wheel drive vehicle)'.

Miscellaneous Taxation Ruling MT 2034 Fringe benefits tax: private use of motor vehicles other than cars outlines a number of acceptable methods that may be used to value the benefit of the right to use an employer's motor vehicle other than a car. One method of valuing the benefit is to multiply the number of private kilometres travelled by employees in a vehicle during a year by a cents per kilometre rate. The effect of paragraphs 15 and 16 of MT 2034 is that this method can only be used where there is extensive business use of the vehicle.

The cents per kilometre rates set out in this Determination are those that applied for the year commencing 1 April 2024, reviewed to reflect the movement in the consumer price index. The rates that applied for the year commencing 1 April 2024 are set out in Taxation Determination TD 2024/1 Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing 1 April 2024?