Dual Cab Utes: A Look At FBT Implications For Employees

Utes are an Australian invention and the term itself is a colloquial one, which means utility vehicles with a coupe. That is because these vehicles have a flat bed platform behind the driver cabin that is ideal for use as cargo space.

The best aspect about the Utes is that the body frame is much lighter as compared to a truck and that enables not only quicker movement but also fuel efficiency.

These attributes have made them pretty handy and though initially they were used by the military, companies like Holden soon made them available to the general public.

Over the years, the models that have been coming out have undergone a lot of refinement with most manufacturers now able to deliver quality of a consistent standard. They have made sure that in addition to road handling, the ride quality too is good by reinforcing the rear suspension.

Dual cab utes and those with lesser capacities on the other hand have bodies that are of special steel that are lightweight but pretty tensile. They are a different version of the normal goods vehicle where additional seating capacity has been provided just behind the driver cabin. The chassis though is common to the passenger cab with the provision to fit in alternate tray sections.

Considering their increasing usage by private owners and employees working for companies, there have been queries regarding their eligibility for any tax related exemption. The moot point being made is whether they can be considered or whether they qualify as 'utility trucks' in order to be given the relevant exemption status.

The FBT liability law is clear that it comes into play only when a particular motor vehicle is used for private purposes and the same would not be applicable if that vehicle is put to use for official related or work related functions.

The term ‘work-related travel’ also includes the commute of the employee from his residence to the place of work and therefore should qualify. On the other hand, they cannot be classified as a car due to the fact that the payload capacity is not restricted to below the one ton stipulated and they may be able to carry more if required. If however, a dual cab ute has a designed payload capacity of under a ton, it automatically qualifies to get the exemption as long as it is used for work related purposes.

The conclusion is that even if dual cab utes having a designed payload of more than a ton is used primarily by the employee for mainly work related activities and only occasionally for private purposes, he or she can still claim the FBT exemption.

Dual Cab Utes were first invented in Australia in 1929, when a farmer needed to use it to carry goods and livestock to market, while still be able to take his wife to church on Sundays. Dual Cab Utes are still a popular sight in country NSW and amongst farmers and tradesmen.