As we approach the busy end of the year, it's easy to overlook one crucial task that can save you time and stress when the FBT (Fringe Benefits Tax) year comes to a close: your vehicle logbook. The 2025 FBT year ends on 31 March 2025, and if you need a new logbook, now is the perfect time to start. Waiting until the last minute could leave you chasing your tail in the new year when things are already hectic.
Why Start Early?
A logbook must be kept for a consecutive 12-week period, meaning the clock is ticking if you want to have your logbook completed before the end of the FBT year. By starting now, you’ll avoid the mad rush later on and ensure you have everything in place without additional pressure. With the end of the year often filled with other business commitments, this is an early tip to help you stay organized and compliant.
Do You Need a New Logbook?
Here are some situations that might require you to start a new logbook for the 2025 FBT year:
- Your current logbook will expire before 31 March 2025 (e.g., it was started in the 2020 FBT year or earlier).
- New employees have commenced since 1 April 2024 and use company vehicles.
- Employees have significantly changed the business use of their vehicles since their last logbook.
- Employees have changed company vehicles during the FBT year, and the new vehicle's business use differs substantially from the previous driver.
- Employees drive an exempt-type vehicle but don’t meet the ATO guidelines for exempt use.
- Employees who previously used the statutory method now wish to use the operating cost method to calculate the taxable value of their motor vehicle fringe benefits for the 2025 FBT year.
What Does Your Logbook Need?
Your logbook must capture all private and business kilometres over the 12-week period, and once completed, it will remain valid for five years. To ensure your logbook is accurate, it must include the following information:
- The start and end dates of the logbook period.
- The car’s odometer readings at the start and end of the logbook period.
- The total number of kilometres the car travelled during the logbook period.
- The number of kilometres travelled for work activities, based on journeys recorded in the logbook.
- The business use percentage for the logbook period.
For each business trip, make sure to record:
- The date the journey began and ended.
- The car’s odometer readings at the start and end of the journey.
- How many kilometres the car travelled on the journey.
- The reason for the journey.
Don’t Get Caught Out!
Taking a proactive approach now will save you from stress and compliance issues later. It’s always better to be prepared than scrambling to catch up when the FBT deadline hits.
So, take this as your friendly logbook reminder: get started now, while there’s still plenty of time to collect the necessary data and ensure your logbook is accurate and complete before the 2025 FBT year ends.
