You have to pay fringe benefit tax (FBT) if your business makes a vehicle available for employees, their associated persons and shareholder-employees to use privately – even if they don’t actually use it.
The vehicle is exempt from FBT during any period when it is not available to be used for at least 24 hours, such as if it has broken down or is being repaired.
Sole traders and partners in a partnership do not pay FBT on business vehicles they use. Instead they make income tax and GST adjustments for private use.