Jessica was provided with a motor vehicle which cost her employer $77,000 (inclusive of GST and luxury car tax) on 1 April 2021. Jessica travelled 22,000 kilo meters during the 2020-2021 FBT year, of which 14,000 kilometers were for employment purposes. Her employer is registered for GST and claims input tax credits on the motor vehicle. The running costs of the motor vehicle were $1,900, out of which Jessica contributed $300.

 Jessica's employer also provided her with a $150,000 loan at a fixed rate of 2% interest. The principal will be payable in full in 2026. She used half of this loan to purchase an investment property, and the remaining half was spent on holidays with her family.

 Calculate the employer's total FBT liability for the benefits provided to Jessica for the 2020-2021 FBT year. Using the statutory method for the car fringe benefit. The deemed market interest rate for the 2020-2021 FBT year is 4.80%.

Answer rating: 100% (QA)

To calculate the employers total FBT liability for the benefits provided to Jessica for the 20202021 ... View the full answer