If you are doing your tax return right now, you may be able to claim your motorcycle as an expense, but you will have little chance of buying a new motorcycle via a novated lease.
You can’t make legitimate claims on your motorcycle if you just use it to commute to and from your place of work.
However, if you use it for work duties or to travel from your work to a work appointment, you may be able to claim depreciation, maintenance and fuel.
You should check with your accountant to see exactly what is allowed.
However, you will have little success buying a motorcycle on a novated lease to reduce your tax.
A novated lease takes the payment out of your weekly wage before tax, thus reducing the total amount on which you are taxed.
But one reader told us they could not find a leasing agency that would include motorcycles.
It seems to be a fairly grey area.
The ATO’s position
An ATO spokesperson told us there is no provision in the Fringe Benefits Tax (FBT) law or any other tax law prohibiting the provision of a novated lease or similar arrangement related to a motorcycle.
“A decision to enter into such an arrangement is a matter for an employer, their employee and any other parties to an arrangement such as a salary packaging service provider or a finance service provider,” the spokesperson says.
“In general terms, where an employer provides an employee with a motorcycle as a fringe benefit, it is treated as a ‘residual’ fringe benefit and not a motor vehicle fringe benefit. This means that the FBT treatment of any motorcycle benefit will be different to the FBT treatment of a car fringe benefit.