Scenario

On 1 April 2014, Newcastle Tyres Pty Ltd purchased a new car costing $20,000 including GST. The company had insufficient space to garage the car and requested the manager to garage it at his home. The car was, in fact, garaged at the manager's home each night of the year, though the car was only used for private travel on 210 days. Other particulars regarding the car are:

Stamp duty on registration

$320

Registration and insurance

$900

Petrol and oil for the year

$1900

Repairs and maintenance

$500

Totalkilometrestravelledinyear(as per log book)

38,000Km

Businesskilometrestravelled

16000Km

Contribution byemployeefor petrol and oil

(declaration provided to employer)

$700

Acar telephone costing $3,500 was installed on the day of purchase and has been used predominantly (95%) for business purposes. All costs are inclusive of goods and services tax.

Question 1: Calculate the taxable value of the car fringe benefit and the FBT payable for the current FBT year, using two different methods. In your calculations, treat the car as if a full input tax credit was available.