David, an employee of a real estate firm, Fairy Meadow Real Estate Ltd, has the use of a BMW that is owned by Fairy Meadow Real Estate Ltd. The car was purchased on 1 July 2021 of the current FBT year for $80,000 including GST and luxury car tax. He used the car for private use for 182 of the 365 days in the current FBT year and travelled 20,000 km of which 5,000 km were for business. He paid $1,500 for petrol during the year. The employer is registered for GST and claims input tax credits on the car.

Motor vehicle costs incurred (and paid for) by Fairy Meadow Real Estate Ltd for current FBT year are as follows.

$3,000 fuel

$1,500 repair and maintenance

$1,000 service

$2,000 insurance and registration costs

David also received a $300,000 low interest loan at 3% from his employer, Fairy Meadow Real Estate Ltd for the FBT year ended 31 March 2022 (the deemed interest rate is 4.80%).

Required:

1- Calculate the fringe benefits taxable value of the car fringe benefit using both the statutory formula method and the operating cost method.

2- Calculate the amount of fringe benefits tax payable by the employer in respect of the current FBT year. Assume that employer wishes to minimise its FBT payable.