ATO attempts to squash the Hilux & Co
The ATO confirmed in a recent Private Binding Ruling that any consistent use of utility vehicles or SUVs is a residual fringe benefit. This is contrary to historical practical treatment of SUVs or utility vehicles that had traditionally been exempt from fringe benefit tax for minor private use, including travelling to and from work and even irregular private use such as dumping domestic rubbish at the tip.
The ATO recently announced a statement that they were focusing on 'unusually high work-related expense claims, including work travel across all industries and occupations, and they reiterated the fact that they were using a much wider approach to crack down on private use of SUVs and utility vehicles.
We expect more guidance on the ATOs renewed focus on fringe benefits of SUVs and utility vehicles in the coming days.