Claiming Utes and Vans on Tax for Plumbers

For plumbers, a vehicle isn't a luxury; it's a mobile workshop. But not all vehicles are treated equally by the ATO.

The "One Tonne" Rule

Vehicles with a carrying capacity of one tonne or more (e.g., Toyota HiLux, Ford Ranger, most Vans) are generally exempt from Fringe Benefits Tax (FBT). This means you can claim 100% of the running costs without keeping a strict logbook, provided personal use is "minor and infrequent."

Dual Cab Utes

Be careful with Dual Cabs. If the carrying capacity is less than one tonne (often due to accessories like bullbars reducing the payload), they are treated as "Cars." This means FBT applies if you use it for private trips, like dropping kids at school.

Branding Matters

Having your business logo and contact details permanently on the vehicle supports the argument that it is a work vehicle, reducing audit risk.