28/04/2026
🚗 Do you provide work vehicles to your team? The ATO is watching and assumptions can be costly.
The ATO has ramped up data-matching on employer-provided vehicles and is actively targeting incorrect FBT reporting. Audits, penalties, interest charges, and reputational damage are all on the table.
Here's what to focus on:
Keep logbook-style records. Even where a formal logbook isn't required, good records are your best defence in an ATO review or audit.
Apportion private vs business use. Accurate apportioning of fuel, maintenance, and depreciation can reduce your FBT liability, even where the vehicle is used mainly for work.
Lodge your FBT return. Even a small or immaterial liability may still require a return. The ATO flags non-lodgers automatically and penalties can reach up to 200% of tax owed, plus interest.
Consider a digital logbook app. Simpler tracking, fewer errors, and records that hold up under scrutiny.
Remember: FBT is the employer's liability, not the employee's. Getting it right protects your cash flow, your compliance record, and your business reputation.
Not sure if your vehicle arrangements are FBT-compliant? We can review your policies and records before the ATO comes knocking. Get in touch today.
