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FAQ: How can the taxable fringe benefit for employer-provided vehicles be reduced?

The taxable fringe benefit for employer-provided vehicles can be reduced by the portion of the license fees, insurance, fuel and maintenance expenses that are directly incurred by you, and that relate to actual private kilometres travelled in that year. This reduction will only take place when you submit your tax return – your employer cannot do this through the payroll.

If your employer pays you an allowance in respect of these costs, you may still be entitled to the reduction; however the allowance received is taxable in full.

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