FBT and car logbooks
With the end of the FBT year approaching, are your car logbooks in order?
The operating cost method, is used by many employers to calculate their car FBT liability. This method is particularly effective where the business use of the vehicle is high. Keeping a logbook is essential to use the operating cost method.
Employees need to prepare a logbook for any vehicle that employers provide them with where there is an element of private use. The logbook period is for 12-weeks and must be representative of typical usage. For example, a period where an employee is taking a block of annual leave, is not representative of business use.