Are your motor vehicles compliant? If not, it's time to take action.
LOG BOOK PREPARATION
As we draw to the end of the 2021 financial year, it is crucial you act soon and prepare a logbook if you don’t already have one in place.
Generally speaking, if you use your motor vehicle for work purposes, having a logbook will result in a more favourable tax outcome. Without a valid logbook in place, a business use percentage cannot be determined, thus potentially limiting deductions available.
Using a logbook allows you to claim a percentage of all your car expenses (fuel, registration, maintenance, interest on loans, depreciation and more), and for businesses, records an accurate split between what is business and private usage.
It is important to record every trip you make in your vehicle for 12 continuous weeks, – not just business-related trips. A logbook is required to be completed for each vehicle used, and once complete your logbook is valid for 5 year (unless there is a material change in your circumstances).
The logbook must include the following details:
- date for each journey
- start and finish times for each journey
- start and finish odometer readings for each journey
- total number of kilometres for each journey
- reason for each journey
- start and finish dates for the logbook period
- start and finish odometer readings for the logbook period
- total number of kilometres travelled during the period
- business use percentage for the period
Please speak to us if you need assistance with an approved logbook method.
HAVE YOU TAKEN AN ODOMETER READING FOR FBT?
Fringe Benefit Tax (FBT) applies to benefits to your employees that are additional to their salary or wage, such as personal use of a company vehicle.
Make sure you have your records in order, to take advantage of exemptions that might reduce your tax bill.
The Fringe Benefit year is 1 April to 31 March. In order to accurately account for your motor vehicle use, remember to take an odometer reading for the FBT period ending March 31st.
FBT lodgement and payment is due 21 May (or 25th June for electronic lodgements through us, as your tax agent).
