Fringe Benefit Tax

Reduce your tax with an electronic logbook

Gradual changes to the statutory calculation of Fringe Benefit Tax (FBT) over the past five years have had serious cost implications for your business. FBT is paid on all work vehicles that are also made available for private use. DIRECTOR's electronic logbook collects all your fleets' information relevant to FBT in real-time and, being ATO approved, enables you to share the report to calculate FBT based on operational costs, at the push of a button.

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OPERATIONAL COSTS METHOD

Keeping a manual logbook is an onerous task so many businesses rely on statutory fraction. But this has become an unnecessary burden since Australia's Future Tax System Review introduced a flat rate of 20 per cent, which was phased in gradually over three years starting in 2011. This meant FBT effectively trebled for a vehicle travelling more than 40,000 kilometres a year.

An example shows that a vehicle worth $35,000 and driven 26,000km per year, FBT calculated based on statutory fraction would be more than $20,000 per year whereas when choosing the operational costs method and manage to ensure a private use of 10%, businesses would only pay just over $11,000 which is a saving of over 40%.

MANAGE FBT ELECTRONICALLY

DIRECTOR's electronic logbook, approved by the ATO, captures data from your drivers in real-time, making it easy to collect the information you need to make an accurate claim. As soon as your drivers start a vehicle they identify themselves using a PIN number, before selecting the purpose of the trip. The logbook entry is now complete and gets fed into DIRECTOR's FBT report at the end of the journey, so you can submit it to the ATO.

ELECTRONIC LOGBOOK BENEFITS

DIRECTOR makes it easy to collect, assess and process information to prove business and private usage of your vehicles. Here are some of the biggest benefits for your organisation:

  • Minimise FBT liability by clearly establishing maximum business use over any given three-month period
  • Accurate, real-time data will eliminate concerns of logbooks being voided by the ATO
  • Gain greater visibility into your fleet and develop detailed understanding of operating costs
  • Reduce back-office administration costs and the hassle of managing paper logbooks

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