New Zealand Introduces Motor Vehicle FBT Reform Bill

New Zealand has introduced a bill to overhaul motor vehicle fringe benefit tax (FBT) rules, with the reforms intended to start from 1 April 2027.
The reform shifts FBT from taxing mere vehicle availability for private use to taxing the actual private benefit provided, with vehicles categorized on provision and only reclassified if private-use circumstances materially change.
Logbooks would no longer need continual updating; instead, FBT would be based on a new “inclusion rate” applied to GST-inclusive cost or tax book value, replacing the current day-count/exempt-day method.
Existing exemptions for work-related vehicles, business trips, and emergency calls would be repealed, though some “normal cars” may qualify for lower FBT rates if used for business.
The proposed categories include 100%, 35%, 20%, and 0% inclusion rates depending on the extent of private use, business use, branding, and vehicle type (including farm vehicles and pool cars).

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.