The EVS is used by a number of Australian Government entities. It is a scheme under which Senior Executive Service (SES) and equivalent officers are provided with a fully maintained car.
Entities generally do not require log books to be maintained for EVS cars, but there are a number of reasons why entities may consider maintaining log books for EVS cars:
- depending on the amount of business travel undertaken by an SES officer, it may reduce the entity's FBT liability if the SES officer keeps a log book
- where EVS cars are used by other staff members for business travel, a log book is useful to identify the driver of the vehicle in the event of an accident, or if a speeding fine or parking infringement notice is issued in respect of the car.
If several employees use an EVS car for private use at different times in a FBT year, the taxable value of the car fringe benefit is not reportable on the employees' payment summaries and may not need to be allocated to the employees who used the EVS car for private purposes. A logbook is useful for determining whether the use of the car meets the requirements of the reporting exclusion. Before 1 April 2007, the taxable value of the car fringe benefit had to be allocated to all employees who used the car for private purposes.
Some Australian Government entities have taken the approach of offering to cash out the EVS arrangement. The total cost of providing the car, including FBT, has been calculated and SES officers are offered the option of keeping an EVS car or receiving an allowance in lieu. If the amount is paid as an allowance, it is taxed under the pay as you go (PAYG) provisions and is, therefore, not subject to FBT. If they so choose, the SES officer can then salary package a car in accordance with the entity's salary packaging policy.