December 21, 2016

Fringe Benefit Tax (FBT) compliance

Following class ruling CR 2016/44, Smartrak's Fleet Management System will be able to benefit all Australian Smartrak customers who use the system for vehicle log book records and odometer records.

Customers who utilise the Logbook trip report and logbook vehicle summary report will now be able to directly input these reports into their FBT reporting obligations.

In conducting the class ruling the Australian Tax Office (ATO) has legally authorised:

  • Smartrak virtual odometer records are acceptable when it comes to recording vehicle odometer readings for all vehicle trips.
  • The logbook trip reporting is an accredited report for declaring the detail and summary both private and business travel.

The move to automated, digital log booking provides numerous benefits to your business, especially in companies with large pools of vehicles subject to Fringe Benefits Tax. The FBT liability of vehicles provided as part of an employment package can now be calculated and recorded much more easily, saving the need to utilise statutory fraction to determine your liability - often saving your business thousands of dollars per vehicle.

Automated digital logbooks save the need to keep a manual, usually handwritten logbooks for every vehicle. In companies with larger fleet sizes, this usually results in the cost of additional employees to manage the record keeping and transcribing of these logs.

Fortunately using Smartrak's fleet management system, the process is much more streamlined and automated, ensuring you're able to make an accurate claim without the extra labour previously required.

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