Summary

• Does your organisation provide vehicles to employees?
• Are the vehicles provided on the basis that they are required for the employee to perform their duties (Tool of Trade), or is the vehicle provided as a benefit in the employee’s package?
• If the vehicle is a Tool of Trade vehicle, can the employee have the vehicle for private use, and what restrictions are applied, if any?
• Does a Tool of Trade vehicle get included in the employee’s remuneration package, as either a benefit or an on-cost, and if so does it attract Fringe Benefit Tax?
• What criteria is applied to Tool of Trade vehicles in terms of the type of vehicle provided? Is there a range of vehicle options based on cc rating or vehicle model?
• If a vehicle is provided as part of the employee’s remuneration package, what are the rules that apply in determining the type of vehicle? For example, position, seniority or length of service?
• Has your organisation identified a list of vehicles that may be available for employees, that are provided as part of their employee packages?
  • Is the list differentiated in any way, for example, defined in terms of position levels?
  • Does the list describe the vehicles available based on appropriateness? For example, Level 1 for senior managers may include vehicles with cc rating greater than 3 litres and involve certain vehicle makes and models?
• What restrictions apply, if any, for company provided vehicles? For example, limitations on mileage; private use only through working week or full private usage; or subsidised fuel?
• Can an employee choose to ‘cash up’ their vehicle (rather than have the vehicle, take the benefit as part of their base salary)?
• Does your organisation calculate Fringe Benefit Tax for company-provided vehicles, and if so, should this value be included in the employee’s remuneration package value (Total Employment Cost)?