21.1 Explanation of methods

First method - logbook record

  • Logbook records and/or odometer records must be maintained by, or on behalf of, the employee, as explained in section 21.2.
  • The employee must provide the logbook records and/or odometer records (or copies of them) to you by the due date for lodging your annual fringe benefits tax (FBT) return or, where you are not required to lodge a return, by 21 May.
  • Using the formula described in section 21.3, you calculate the percentage of business use. You then use this percentage when applying the otherwise deductible rule, with step 2 modified as follows:





Ignoring any payment or contribution made by the employee, calculate the taxable value of the fringe benefit.


Multiply the step 1 amount by the percentage of business use calculated according to the formula described in section 21.3.


Now look at any payment or contribution made by the employee. How much of this payment or contribution is allowable as an income tax deduction to the employee?


Subtract the actual deductible amount (step 3) from the hypothetical deductible amount (step 2). The result is the amount by which the taxable value of the fringe benefit may be reduced.

    Last modified: 06 Dec 2011QC 17822