When is a ute not a ute?

Did you know a FORD RAPTOR UTE IS NOT A UTE! Well according to the Australian Taxation Office anyway.

There's a common myth that dual cab utes are automatically exempt from fringe benefits tax (FBT). However, that's not the case.

If your employers provide dual cab utes to staff to complete their duties and the vehicle is available for personal use, then the benefit may be subject to FBT.

When FBT doesn't apply

To qualify for an exemption, 2 conditions must be met. The dual cab ute must be:

1. An eligible vehicle, which means it's designed to carry:

a load of one tonne or more, or more than 8 passengers (including the driver), or a load under one tonne and not primarily designed for carrying passengers.

2. Only used for limited private use (i.e. minor, infrequent and irregular), such as the occasional trip to the tip or helping a mate move house.

So, if your work dual cab ute doubles as the family taxi or is used for weekend personal trips, it's not exempt.

When FBT applies

If an employee's personal use doesn't meet both exemption conditions, you will be liable for FBT.

What to do

Ensure you keep accurate records – even if the benefit is exempt from FBT because of limited private use, you need to keep records to support this.

Ford Raptors do not meet the specifications to be dual cab ute and are treated the same as a passenger vehicle for Fringe Benefits Tax. Their load carrying capacity is insufficient and they are deemed a 'passenger' vehicle.