On 5 November 2020 Squire Lawyers Pty Ltd (Squire) purchased a Porsche Boxter motor car for $171,000. The car was for the exclusive use of one of Squires star employees, Sim. Between the date of purchase and 31 March 2021 Sim travelled 45,000 kilometres in the car. The following expenses were incurred during the relevant fringe benefit tax year:

Stamp duty on the purchase of the car $1,200

Registration $1,800

Third party insurance $5,500

Comprehensive insurance $6,200

Maintenance and service $21,000

Petrol $8,800

The company paid all of the above expenses with the exception of petrol which was paid for by Sim. This amount was not reimbursed and Sim provided the required declaration to her employer. On the day of purchase a rear parking camera was fitted to the car at a cost of $9,000. A logbook was kept showing that Sim travelled 15,000 kilometres during the relevant fringe benefit tax year for business purposes. Squire did not make an election under section 10 of the Fringe Benefits Tax Assessment Act 1986 and is entitled to claim the input tax credit for GST purposes.

Required:

a) Advise Gillian of the fringe benefits tax payable, if any, (rounded to the nearest dollar) for the FBT year ended 31 March 2021.

b) Provide an overview of FBT and its objective