FBT in a Changing ATO Landscape
Managing a fleet is complex enough without the added pressure of FBT compliance. But with private vehicle use, evolving EV rules, and increasing audit scrutiny, having clear, accurate records is no longer just good practice—it’s essential
Private use records are where a most fleets get caught. The core risk is that FBT gets triggered when a vehicle is available for private use, not JUST when it is being used privately. This of course means that that fleet managers must make sure that the logbooks are definitive. They must cover 12 continuous weeks and reflect real usage patterns, and valid for up to 5 years, but that all must be updated if usage changes. This must contain start and ends for date/ odometer, the distance travelled and a clear description of every trip.
EV exemptions are a big opportunity but there are some misunderstandings in where they stand, especially with the changes potentially in the 2026 budget. Currently eligible EVs have 0% FBT on private use and running costs, including charging. To qualify the vehicle must be a battery EV or hydrogen fuel cell vehicle, be first held and used on or after 1st July 2022, be under the Luxury Car Tax threshold and be provided to an employee for private use.
Strategically, EVs have a strong advantage vs Internal combustion engine, but if classified incorrectly (like some Plug-in Hybrids), the manager exposes the company to a full 47% FBT exposure. This means that documentation is required to prove eligibility.
Finally, making sure that you have full readiness of any potential Audit by concentrating on what the ATO focusses on. Auditors look for complete vehicle register (all vehicles available to employees identified), evidence of calculations (logbooks, odometer logs), proof that your exemptions are inline (EV eligibility criteria documents) and that there is consistency across the data (logbooks vs fuel cards vs telematics).
Making sure that you don’t have red flags that may trigger audits like inconsistent logbooks, assuming some vehicles are automatically exempt, and vehicles allocated but not tracked for private use. You must make sure that you have all your ducks in a row with logbooks, telematics, employee declarations, cost records etc.
AusFleet’s new FBT report is already helping customers bring this visibility together in a more structured and practical way. Feedback from both fleet and finance has been positive, with customers telling us it is streamlining the reporting process, reducing manual effort, and giving teams greater confidence in the accuracy of their FBT data.
There is also a clear opportunity to create even more value by connecting AusFleet with Finance systems, supporting a more seamless end-of-FBT-year reporting process.
At the end of the day, FBT is all about visibility. When you have clear, accurate data on how vehicles are used, like that which can be found in the AusFleet system, everything else—from compliance to reporting—becomes much simpler.
If you would like to learn more about the new FBT report, or discuss how AusFleet can support your organisation’s FBT reporting process, please contact your Account Manager or email AusFleet Customer Services.