Determining the statutory percentage

Started a novated lease after 10th May 2011?

Did you nominate or plan to drive further than 25,000 kms per year.

Previous rates
Total kilometres travelled during the year
Statutory percentage
Less than 15,000
0.26
15,000 to 24,999
0.20
25,000 to 40,000
0.11
Over 40,000
0.07

Then expect your novated lease budget to change to the new rates applied from the 1st April 2012.
The move to one statutory rate of 20% will be phased in over four years, over this time, each FBT year your payroll deductions need to be varied to the new statutory rate (%).

For any new novated lease entered into during transition period can choose to skip the transitional arrangements and apply the 20% statutory rate, however, this choice is subject to certain conditions.
You cannot skip the transitional arrangements where an employee would be worse off as a result of this choice.

That is, the employee cannot be placed at a direct financial disadvantage as a result of this choice, unless you have obtained the consent of the employee.

Transitional rates
Total kilometres
travelled during the year
Statutory percentage
From
10 May 2011
From
1 Apr 2012
From
1 Apr 2013
From
1 Apr 2014
Less than 15,000
0.20
0.20
0.20
0.20
15,000 to 25,000
0.20
0.20
0.20
0.20
25,000 to 40,000
0.14
0.17
0.20
0.20
Over 40,000
0.10
0.13
0.17
0.20

ATO - Car fringe benefits;
Determining the statutory percentage

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