FBT Odometer Reading

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It’s that time of year, the annual requirements for the vehicle logbook method of fringe benefits calculations for the Fringe Benefits Tax period is just around the corner, Sunday 31st March 2024, to be exact.

To claim work-related car expenses using the logbook method, it must:

πŸ“Œ Cover at least 12 continuous weeks

πŸ“Œ Include odometer readings for the start and end of the logbook period, and

πŸ“Œ Include the destination and purpose of every journey, the odometer reading at the start and end of each journey and the total kilometres travelled during the period.

πŸ“Œ EV, calculating electricity costs of charging an EV at a residential premises for FBT purposes is 4.20 cents per km.  A transitional approach applies for the 2023-24 fringe benefits year, whereby if odometer records have not been  maintained, a reasonable estimate may be used based on service records,  logbooks or other available information.

Your logbook is valid for 5 years.  However, if your circumstances change and the logbook is no longer representative of your work-related use, you will need to complete a new 12-week logbook.

πŸ’‘Tip: there are about 14 weeks remaining for this financial year.  If you still need to start your 12-week logbook, start now πŸ˜‰

If you’re not sure you have FBT obligations, just take the odometer reading anyway and your bookkeeper will request the reading if required.  Being Easter Sunday don’t overlook taking the readings for your company vehicles.

There are a number of types of FBT and the law includes varies categories and valuations rules under each category.

Some of the items to be considered are

πŸ“Œ Car Fringe Benefits

πŸ“Œ Car Leasing Fringe Benefits

πŸ“Œ Car Parking Fringe Benefits

πŸ“Œ Entertainment Fringe Benefits

πŸ“Œ Expense payment Fringe Benefits

πŸ“Œ Loan Fringe Benefits

πŸ“Œ Debt Waiver Fringe Benefits

πŸ“Œ Housing Fringe Benefits

πŸ“Œ Living Away from Home Allowance Fringe Benefits

πŸ“Œ Property Fringe Benefits (property, goods & shares)

πŸ“Œ Residual Fringe Benefits (items not covered above)

Remember, you will need to pay FBT even if the benefit is given to an associate of your employee under an arrangement made with you and your business

You can read more here → http://www.ato.gov.au/carexpenses

Odometrer Fbt 2022