"Expense Payment Benefits (employee would own the car, not a...

"Expense Payment Benefits (employee would own the car, not a lease). What FBT tax would apply "

The taxable value is the amount paid by the employer or the amount reimbursed to the employee. With some planning, the taxable amount can be reduced to the extent that the expenses would have been deductible in the hands of the employee (substantiation rules apply to that extent). There are 3 methods that an employee can use to substatiate the deduction claims.

The FBT payable is at 46.5% on the grossed up value of the benefits (gross up at a factor of 2.0647, assuming the employer can claim the GST Input Tax Credit).