Exemptions and concessions
You must keep specific records if you want to take advantage of various exemptions or concessions to reduce the FBT you need to pay. You must retain these records for five years from the date when the relevant FBT return is lodged.
The records you need to keep include:
- all documents you are required to obtain from employees, such as declarations, invoices and receipts, bills of sale, lease documents, travel diaries, copies of logbooks and odometer records
- fleet management, logbook and odometer records (where the benefit is a car fringe benefit valued under the operating cost method).
Some exemptions and concessions require you to obtain documentary evidence of expenditure by an employee. Broadly, this means you are required to obtain the original invoice or receipt, or both, from your employee. The invoice and receipt must show:
- the date of the receipt or invoice
- the date of the expense
- the name of the supplier
- what was bought
- the amount paid.