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Vehicle FBT Reporting

Vehicle FBT Reporting. Electronic Log Books. Navman Wireless Electronic Log Books. Background Working Example Where Navman Wireless come in Return on Investment. Background. FBT is a tax paid on all work vehicles that are also made available for PRIVATE use

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Vehicle FBT Reporting

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  1. Vehicle FBT Reporting Electronic Log Books

  2. Navman Wireless Electronic Log Books Background Working Example Where Navman Wireless come in Return on Investment Confidential | 2

  3. Background • FBT is a tax paid on all work vehicles that are also made available for PRIVATE use • There are 2 methods to calculate your FBT liability each year: • The Henry Report in 2011 legislated that Statutory Fraction will now be 20% across all distances and applicable vehicle classes. This is a 3-fold increase in FBT liability for vehicles doing more than 40,000Km a year • Statutory fraction is now increasing the tax burden on businesses and affecting the bottom line

  4. Which method to use? • Already using Statutory Fraction? • Tax savings if move to Operating Cost • Achievable by using Navman Wireless automated log books • Introduce visibility of fleet utilisation and operating costs of your fleet • Already using Operating Cost? • Reduce back-office administration costs through automation • Eliminate hassle and negativity of paper log books • Increase visibility of fleet utilisation and operating costs of your fleet • Accuracy across 365 days allows you to identify the 3 months of the year that best reflect your true private use

  5. Working Example Maintenance and Repairs $1000 • $35,000 vehicle with the following typical running costs Petrol $3,276 9L fuel per 100km. Fuel = $1.40/L Insurance $750 Distance 26,000km Rego $750 Confidential | 5

  6. Working Example : Statutory Fraction Simple method which applies a fixed % to the taxable value of a car 1– Days available is Days in FBT Year divided by Days available for private use – typically 365 days unless car stays on site every day FBT Paid = Taxable Value * 2.0647 * 46.5% Taxable Value Confidential | 6

  7. Working Example : Operating Cost This method takes into account all the costs of operating the vehicle for each tax year e.g. fuel, lease cost, maintenance, rego etc. It then applies a true private use % to the value of the vehicle derived from log-books over a continuous 12 week period. Assumes privateKMs are 10%. FBT Paid = Taxable Value * 2.0647 * 46.5%Lease Finance costs not included in above Operating costs Taxable Value Confidential | 7

  8. Where Navman Wireless come in • Automates paper-less log-book collection Confidential | 8

  9. Where Navman Wireless come in • Make Operating cost model achievable for large company fleets • Allows businesses to monitor and control PRIVATE use and limit their FBT exposure Confidential | 9

  10. Return on Investment • Potential tax savingmoving to Operating costmodel • Reduce cost if on Operating cost model Confidential | 10

  11. The End

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