The FBT Update for May 2024 provides information on various topics related to vehicles, tax deductions, asset write-offs, bookkeeping, and the conditions for private use of vehicles by employees.
The FBT Update for May 2024 provides information on various topics related to vehicles, tax deductions, asset write-offs, bookkeeping, and the conditions for private use of vehicles by employees. It covers details such as the calculation of vehicle weight, luxury car tax thresholds, limitations on private use of vehicles, and the importance of proper bookkeeping and reconciliations. The document also mentions the requirements for accessing instant asset write-offs for small businesses.
Key points
- The weight of a vehicle is used to determine its carrying capacity and whether it is designed for the carriage of passengers or goods.
- Luxury car tax thresholds vary depending on the type of vehicle and the financial year.
- Vehicles provided to employees for business use should have a limited private use policy in place.
- Small businesses can access instant asset write-offs for the acquisition or improvement of assets, subject to certain conditions.
- Proper bookkeeping and reconciliations are essential to ensure accurate financial records and compliance with tax regulations.
- The ATO may request agreements and supporting documents to verify income and expenses.
- The instant asset write-off level for small businesses may vary and is subject to legislative changes.
- Private use of vehicles by employees should be limited to work-related travel and relatively small other private use.
