Dual Cab Utes and FBT

A dual cab ute is not exempt from Fringe Benefits Tax (FBT). If an employer provides 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.

To qualify for an exemption, the due cab ute must be an 'eligible vehicle'. That is, it must be designed to carry a load of one tonne or more, or more than eight passengers (including the driver). This means the carrying capacity needs to be more than one tonne. 

The dual cab ute must also be used for limited private use (ie minor, infrequent or irregular), such as the occasional trip to the tip or helping mate move house. 

If any employee's personal use of the dual cab ute does not meet both of the above exemption conditions, then the employer will be liable for FBT and is required to lodge a Fringe Benefits Tax Return. 

If your entity has purchased a dual cab ute that has a carrying capacity of less than a tonne, the vehicle is liable for Fringe Benefits Tax