Dual Cab Utes Aren’t Tax Free

There's a common myth that dual cab utes are automatically exempt from fringe benefits tax (FBT).

However, that's not the case.

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.

By understanding how your employees use their dual cab utes, you can work out if FBT applies.

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:

2. a load of one tonne or more, or

3. more than 8 passengers (including the driver), or

4. a load under one tonne and not primarily designed for carrying passengers.

5. 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 employee’s work dual cab ute doubles as the family taxi or is used for weekend personal trips, it's not exempt. You need to check your FBT obligations to ensure compliance.

You can find more information to support you and your clients at Exempt use of eligible vehicles.