Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1 May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikita’s usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges. For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometers in the car and incurred expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs. Calculate the Fringe Benefits Tax Liability for Perisher and identify key points as below: a) number of days available for private use b) base cost and employer contribution amout c) operating cost method and statutory cost method

Question

Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1
May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work
purposes. However, Nikita’s usage of the car is not restricted to work only. Perisher purchased the car on that
date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges.
For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometers in the car and incurred
expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days
when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled
for annual repairs.
Calculate the Fringe Benefits Tax Liability for Perisher and identify key points as below:

a) number of days available for private use

b) base cost and employer contribution amout

c) operating cost method and statutory cost method

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