Did you know that you can reduce the amount of fringe benefits tax (FBT) you may be liable to pay by…
- Replacing fringe benefits with cash salary.
- Providing benefits that your employees would be entitled to claim as an income tax deduction if they had paid for the benefits themselves
- Providing benefits that are exempt from FBT including portable electronic devices such as mobile phones, lap tops, tablets and GPS receivers, computer software, protective clothing and tools of trade provided they are used primarily for use in the employee’s employment and only one item is purchased per FBT year (unless the item is a replacement)
- Using employee contributions – which is a common adjustment reported in a business’ end of year financial accounts. For example, an employee receiving a car fringe benefit can pay for some of the operating costs (such as fuel) that you do not reimburse. Employee contributions may be assessable income to you and may be subject to GST. A record of employee private use of the motor vehicle should be maintained.
To assist with maintaining the private use of a vehicle you may consider the use of the following smart phone applications:
Mileage Logbook Driversnote
Driversnote is an intelligent mileage logbook that works to automatically track your trips and is ideal for employees, employers and self-employed individuals looking to document trips effectively as per ATO requirements. This app is easy to use and has an accurate GPS. JH & Co recommend using this app.
Download: Itunes Store/Googleplay
DriverDirect is an app created by Toyota Finance Australia Limited that has a host of features including fuel site locator, log trips via GPS tracking and expenses and reports. The app is ATO compliant, can support multiple vehicles and works with novated lease cars as well.
Download: Itunes Store and Google Play
TripLog – Auto Mileage
Track your mileage via GPS with the mobile app that features a wide range of benefits including expense tracking, fuel economy calculation, reports and much more. This app is easy to use by reviewers have said there is not customer support when you have a problem or a query.
Download: Itunes and Googleplay
ATO Vehicle Logbook
This app is fully ATO compliant for claiming the percentage business use of a vehicle and supports the use of multiple vehicles, and multiple logbook periods.
Download: Itunes Store
Give them a try – we think they’ll make your life much easier and save you valuable time so you can enjoy the things in life you’d rather be doing.
We would be interested in hearing from you in regards to any feedback or experiences, positive or negative, that you may have had regarding any of these motor vehicle log book applications.
Should you wish to discuss or review your FBT obligations or how you may reduce them please contact our Office on 5831 1466.
This article was written by JH & Co Management Pty LtdShare