STOP PRESS - May 2006

The Taxation (Depreciation, Payment Dates Alignment, FBT and Miscellaneous Provisions) Bill was passed into law on 3rd April 2006. Subsequent to this, it is now confirmed that a further legislative change will be made shortly. It clarifies that for vehicles a taxpayer is leasing or owned on 1st April 2006, they will be required to use the cost method to calculate the FBT liability. The option to use the book value method is not open. Further clarification is also made for vehicles released by the same lease company to non related parties can use either method for assessing the taxable value. Apparently, this was always the intent of the Bill but it is not how the legislation currently reads.

LeasePlan recommends that our clients budget that their current fleet will be required to use the cost price method of calculation from 1st April 2006.

For the complete discussion document please click here.