Statutory formula method records

Base value

You can obtain the base value of a car from the normal purchase records or any other records relating to the direct cost of the vehicle. The records should include the purchase price (subject to the various inclusions and omissions discussed in section 7.4) and the date of purchase.

Records you can use to work out the base value include:

  • invoices/tax invoices
  • receipts
  • journal entries
  • bills of sale
  • lease documents.

Total kilometres travelled

If you use the statutory formula method to calculate the taxable value of a car fringe benefit provided before 7.30pm AEST on 10 May 2011, or where you had a pre-existing commitment for a car benefit provided after that time, or you are required to use the transitional rates, you have to determine the total kilometres travelled by the car during the year. The best way to do this is to keep a record of the odometer readings at the beginning and end of the FBT year.

If you do not record odometer readings for the car, it is acceptable to provide appropriate evidence of two separate odometer readings close to the beginning and end of the FBT year, for example:

  • vehicle purchase or sale invoices showing an odometer reading
  • repair invoices showing an odometer reading
  • service records showing an odometer reading
  • any document used for registration purposes that shows an odometer reading (for example, pink slips)
  • entries in your logbooks showing an odometer reading close to the beginning and/or end of the FBT year (as long as the entry is dated, shows the name and signature of the person making the entry and the odometer reading)
  • fleet management or oil company charge cards that show an odometer reading on account statements
  • if a new car was purchased and no odometer reading was recorded on the vehicle purchase invoice, zero kilometres is acceptable as the opening odometer reading.

Days available for private use

If a car is available for private use every day of the year, you do not have to keep records of when the car is available. But you must record the days when the car is not used or available for private travel. You can do this in a number of ways, including referring to the pattern of use - for example, where a car is garaged each night.

    Last modified: 08 May 2012QC 17818