Trekkie (Member - WA) replied:

Dave
There are a lot of variables in this that can change the correct answer
As it is past 31 March (end of FBT year) you may not be able to change last years FBT figures. You may be able to submit the $1600 unreimbursed amounts and be reimbursed. Depends in part if you are on FBT method or ECM method. Is the mob in Melbourne McM S
email me if you wish and I can try to point you in the right direction.

Member - Stan (VIC) replied:

AFAIK it works as follows:

56000 * x 11% = $6160 the amount of FBT which payable for the year.

With Unreimbursed running cost there 2 options:

1. If you got enouth money in your salary package account available - to claim it
as a standard deductions (tyres, service, parts, etc).

2. If you don't have enouth money in your account for reimbursent - claim them
on this form. And because you paid for them from your after tax money they will
substruct it from your FBT for the year.
So 56000 * x 11% x 365/365 - 1600 = $4560

Now how they refund you this amount I am not sure I a always claimed the deductioins using option 1.

Hope this helps

Stan

bmwrider replied:

I also have a salary sacrifice with 25000km pa. There is an opportunity to reimburse any unspent funds in your "bank" each FBT year. But it must be claimed prior to the 25th March each year otherwise it rolls over to the next FBT year. You do not lose the money. It stays in your bank and you can use it for any unexpected running costs. Any alterations to your FBT liability can be dealt with by your accountant when completing your tax return. Hope this helps.

Garry

Wizard1 replied:

I am a little confused. I too have a novated lease as part of a salary sacrifice. But I fail to see what running costs have to do with the FBT liabilty.

Your FBT liability is assessed against the value of the vehicle at the commencement of the lease and doesn't change, as far as I know. The only variable with your FBT liability is how many KMs you estimate you will travel.

I can claim all I like against running costs but it has nothing to do with FBT liaibility. Your running costs lower your tax as they come out of your salary, they don't effect FBT.

Running costs are just that and do not effect the value of the vehicle. Certain items cannot be claimed against a novated lease running costs. These include roof racks, bull bars, CB radios, etc unless they were on the vehicle at the start of the lease and gross up its value.

What sort of "running costs" are you attempting to claim?

Wizard
Gold Coast

bmwrider replied:

Your circumstances may change, you might start using more kilometres, your fuel usage may be greater, towing, desert/sand driving, breakdowns/punctures may occur that may not be covered by warranty. 25000km pa is 1 km into the 11% FBTscale, your running costs (lease fees) are calculated on the distance you nominate. If you increase your driving distance your runnning costs will change. The next FBT scale change occurs at 40000km pa (7% I think). The other thing to remember is that at the time the lease expires you have to pay out the residual. If there are funds left in your "bank" they are returned to you. The same as if you sell the car for more than your predetermined residual (determined by the ATO)that excess is yours tax free (as long as the ATO does not believe you are in the business of profitering. This is why it is important to select a vehicle with a high resale value.

Regards

Garry