Reduce your tax with an electronic logbook

Teletrac Navman FBT 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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fringe benefits tax operational costs method

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 Fringe Benefit Tax 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%.

fringe benefits tax report on Director solution

MANAGE FRINGE BENEFITS TAX 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. Here’s how it works:

  • As soon as a driver starts a vehicle, they have to identify themselves using a pin number
  • They select the purpose of their trip from categories like ‘going to the office’ or ‘visiting a client’
  • The logbook entry is now complete and gets fed into an FBT report at the end of the journey
  • This is captured digitally in real-time so nobody has to waste time typing out manual entries

the benefits of an electronic logbook for fbt

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

 

 

Electronic Logbook's within your business

When you operate a fleet, tax time generally means going over the previous year’s work history – not just punching a few digits into a formula and calling it a day. While the statutory fraction method is a common and simplified approach for calculating your FBT return, defaulting to the 20 per cent flat rate means you might be paying more than you need to. Find out how an electronic solution can help get the best return possible.

 

Get a Demo »   Get the eBook »

 

Tips For Maximising Your FBT Refund

When you operate a fleet, tax time generally means going over the previous year’s work history – not just punching a few digits into a formula and calling it a day. 

Manage utes for work? You need to think about Fringe Benefit Tax

As tax time edges closer, it’s important to know the different kinds of tax you’re liable for so you can avoid penalties. 

How do I calculate Fringe Benefits Tax?

Fringe Benefits Tax (FBT) is calculated via two standard methods, either the statutory fraction or using a logbook. While the statutory fraction is the most common, the logbook method is much more precise.