The FBT year is coming to an end on 31 March 2017.
In order to claim business use on a vehicle a log book must be kept for a continuous period of 12 weeks noting business use to calculate the percentage of expenses that can be claimed.
The log book is valid for a period of five years unless there is a significant change in business use, at which point a new log book must be completed. It is not sufficient to estimate business use as the ATO have announced that if there is no log book, then you will have to use the statutory formula method whereby the private use of the vehicle is deemed to be 20% of the purchase price of the car (incl GST).
The ATO have even used toll records to check trips listed as business in the log book are, in fact. genuine.
This article appeared in our February 2016 newsletter
