With the Fringe Benefits Tax (FBT) year ending on
31 March, it’s a good time to check that your vehicle records are in order. If your business provides cars to employees, keeping a proper logbook remains one of the most effective ways to avoid paying more FBT than necessary.
What a valid logbook needs
A logbook must cover a 12‑week period and can be used for five years unless the vehicle’s usage changes significantly. It should record:
- Opening and closing odometer readings
- The purpose of each trip – It is not enough to simply state it is business
- Kilometres travelled
- The date of each trip
Without a valid logbook, the statutory formula method must be used, which often results in a higher FBT amount.
Utes and “work vehicles” aren’t automatically exempt
There’s a common belief that utes and dual‑cab vehicles are always exempt from FBT. They’re not. The exemption only applies when private use is
minor, infrequent and irregular.
If your ute is mainly used for work and the occasional private use like a trip to the tip, you do not need to keep a logbook. But if you use your private use is more regular or goes beyond those minor, infrequent trips you will need to keep a logbook to support your business usage.
Home‑to‑work travel: car vs non‑car
For
cars, travel between home and work is generally treated as
private use. This can increase FBT exposure if not recorded correctly.
For
non‑car vehicles (such as certain Utes, vans or trucks), home to work travel
can be treated as work‑related in some situations where the ute it primarily used for work related purposes.
