Chapter 5 - EP'T Income - Company Cars, Vans, Loans Flashcards
Taxable benefit: company car
List price*Appropriate %
Less: Employee contributions for private use - note different to capital contributions
TIME APPORTIONED
List price
Price published (ignore sale price)
Including all accessories
Deduct capital contributions of employee (max $5k)
Appropriate percentage: Petrol car and Diesel meeting RDE2 standards
Co2 Emissions per KM
51-54 grams = 15%
55 grams = 16%
each complete additional 5 grams: 1% additional until 37%
ADD 4% for a diesel car not meeting the RDE2 standard
Appropriate percentage: Electric cars
Zero CO2 = 2%
Hybrid Electric
See table
If car unavailable for a period of time at least 30 days:
Reduce proportionally
Company Fuel
First 10k miles: 45p per mile
After 10k: 25p per mile
= Allowable Amount
Minus:
Mileage Allowance Received (total miles)
If allowable greater than received = benefit
If less than received from company = taxable benefit
Travel from home and the perm workplace doesn’t count. Temp does if less than 24 months
Private fuel paid for by employer
Base figure ($27,800)*appropriate percentage
This is time apportioned to the period where company paid for it
Vans
Use has to be significant
Flat rate taxable benefit: 3,960
Van fuel benefit: 757
Beneficial Loan
Interest payable on 2.25%
Less: actual interest paid
= Taxable benefit
If tax free, just calculate the 2.25%
If it says not qualifying purpose - calculate it
Exemptions
Loans below $10k
Average method
Loan value + amount remaining to be repaid 2.25%0.5
Less:
Actual interest paid time apportioned
Precise method
Calculate values time apportioned based on values repaid
Less: actual interest paid time apportioned
Private use of company asset and then receiving the asset
Higher of:
MARKET Asset value when employee receives it
OR:
Asset value when made available for use
Less: 20% tax on period until current FY (period already assessed). If in current period then just up until date made available
TOTAL
Less money paid by employee
