One wrong assumption on your ute could cost you thousands in tax, penalties and stress
Most business owners think they’re doing the right thing with work vehicles… until the ATO proves otherwise. Right now, the ATO is using data-matching to zero in on vehicle benefits—and what used to slip through quietly is now triggering audits, penalties, and interest.
And here’s the real problem…It’s not fraud that’s catching people out. It’s assumptions.
We’re seeing it across construction and trade businesses. A dual-cab ute gets provided to a team member. It’s used mostly for work. Everyone assumes: “No FBT issue.”
But that’s where it goes wrong. Because the ATO doesn’t look at what you intended—they look at what you can prove.
- Dual-cab utes are not automatically exempt
- Even minor private use can trigger FBT
- No records? The ATO assumes the worst
Then it escalates:
- No apportionment of private vs business use
- No logbook-style evidence
- No FBT return lodged because “it didn’t seem material”
Suddenly, what felt like a non-issue becomes:
- Backdated FBT
- Interest
- Penalties up to 200%
- Time lost dealing with audits
And remember—FBT sits with the employer. Not the employee. Not the bookkeeper. You.
Here’s the shift smart business owners are making:They stop guessing… and start documenting.
- Review every vehicle in your business
- Be clear on private vs business use
- Keep proper records (even if not strictly required)
- Lodge when needed—no assumptions
Because getting FBT right isn’t just about compliance…It protects your cash flow, your time, and your reputation. If you’re unsure where you stand, now’s the time to get clarity before the ATO does.
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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.
