Joan is employed by CPA Australia and has to travel a lot for work as she is an events manager state-wide in Tasmania. She receives the following benefits in the 2020/21 FBT year:

Laptop:

Joan needs a laptop for work to run various events around the state and her employer purchased one for $1,250on the 1^st of July 2020.

Car:

On the 1 April 2020 Joans employer purchased a car that cost $48,000 and provided it to Joan for her use. Joan is allowed to take the car home at the end of each work day and there is no restriction on her use of the car for private purposes. Joan contributes $150 per month towards the car expenses. Joan determined that from when she started using the car on 1 April 2020 until 31 March 2021 the total kilometres travelled were 50,000 km (35,000 km of these were for business travel).

CPA Australia incurred the following expenses (excluding depreciation) in relation to the car in the 2020/21 FBT year:

Petrol and oil $14,000

Registration $600

Insurance $1,150

Required:

1. Calculate the Fringe Benefits Tax liability of Joans employer in respect of these two benefits, assuming that they wish to legally pay the least amount of fringe benefits tax possible. Cite relevant legislation or case law to support your answer.

[6 Marks]

2. Calculate the reportable fringe benefit amount (if any) that will be included on Joans 2020/21 payment summary.