A car is purchased for $48,400 (including GST) on 1 April 2018.

A car is purchased for $48,400 (including GST) on 1 April 2018. The car was available for private use for all of FBT year ending 31 March 2019, except for the month of February 2019 when the car was garaged at work whilst the employee was overseas on holidays. For the FBT year ending 31 March 2019 the car travelled 25,000 kilometres and the employee paid the employer $4,000 (including GST) as his contribution to meet the running costs for the car. 

The total operating costs for the car (including the deemed depreciation and interest) for the year ending 31 March 2019 were $15,000. This figure is before any employee reimbursement for the running costs.

The business use percentage has been calculated to be 60%.

Required:

Which method should this employer use to calculate the fringe benefits tax liability for this car for the FBT year ended 31 March 2019? Calculate the fringe benefits tax liability for this employer for this car fringe benefit for the FBT year ended 31 March 2019.  

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