Fringe Benefits Tax

Classify trips on the go using the MyMiX mobile app.

Significantly reduce your FBT liability

The Fringe Benefits Tax (FBT) module from MiX makes it possible to classify trips on-the-go using the MyMiX mobile app.

FBT is paid on all work vehicles that are also made available for private use. Our FBT module makes it easy for drivers to classify trips as business or personal, for logbook purposes and as approved by the ATO.

Drivers can view classified trips and edit historical trips within a 2-day period. With the easy-to-use dashboard, drivers can quickly determine the percentage of business trips taken and identify which trips have yet to be classified.

There is also the option to receive push notifications (which happen directly after each trip has taken place) to be alerted of instances where no trip classification has been made.

Benefits

The FBT module from MiX by Powerfleet offers the following benefits:
  • Calculate FBT based on operational costs, at the push of a button.
  • Simplification and semi-automation of drivers’ legal obligation to perform trip classifications.
  • Time-saving by moving away from paper logbooks.
  • Reduce back-office administration costs.
  • Flexibility to classify trips on-the-go.
  • Ability to reclassify trips historically and add a pre-defined business reason (7-day rule applicable).
  • Quick and easy capture of trip purpose using pre-defined driving reasons as well as a free text field to add commentary, as required for ATO compliance.
  • Gain greater visibility into your fleet as well as a detailed understanding of operating costs.

    Reduce Your FBT Liability with the MyMiX FBT Module

    Collecting, categorising, and calculating work and private trips can be complex. With the Fringe Benefits Tax module from MiX, data can be collected and compiled immediately after it is received from the driver.

    This means you get accurate information and that calculating your FBT will be easier, faster, and more accurate.

    Trip classification data is fed into the system and compiled into an easily accessible report that is ready to be submitted to the ATO. The MyMiX FBT module removes the guesswork of determining private vehicle use and giving you the most accurate data needed to claim the right FBT refund across your fleet.

    MyMIX FBT Module for Trip Classification

    The FBT Module in MyMiX gives drivers the ability to easily classify completed trips as business or personal directly from the MyMiX mobile application.

    These trip classifications are sent to MiX Fleet Manager and are stored so that reports can be generated for logbook purposes. With the Fringe Benefit Tax module, you can do trip classification on the go and then manage and view trips in real-time as needed.

    Frequently Asked Questions

    If you have any other questions or would like to learn more please get in touch
    What are fringe benefits?

    A fringe benefit is something extra you get from your employer aside from your wage or salary. It can also be something additional you receive in return for foregoing some of your salary under a salary sacrifice arrangement.

    A fringe benefit can be given for use by you, your spouse or your children. Your employer is liable for the tax (known as Fringe Benefits Tax) that may apply to the benefits that you and/or your family may receive – not you.

    What is considered a fringe benefit?

    A wide range of perks are classed as fringe benefits. The most common ones are:

    • A leased vehicle for your personal use (under a ‘novated lease’ arrangement)
    • Personal use of a company car
    • Discounted loans
    • Gym/health-related memberships
    • Entertainment expenses including free/discounted food, cinema tickets and accommodation
    • Private health insurance
    • Living-away-from-home allowance (LAFHA)
    • Real property, such as land and buildings
    • Right to property, such as shares and bonds
    • Childcare costs and school fees

    Items you need to do your job – e.g. mobile phones and occupational-specific clothing – aren’t generally taxed as fringe benefits, particularly if they’re provided to you by your employer.

    Which vehicles do you need to pay Fringe Benefits Tax on?

    Electronic FBT logbooks are typically more accurate as they remove the risk of human error that comes with manual entry and collects the data needed for FBT returns quickly and easily, saving time and labour.

    What is a vehicle fringe benefit?

    The taxable value of a car fringe benefit is designed to reflect an employee’s ‘private use’ of the vehicle, as only the private use of the car is subject to Fringe Benefits Tax (FBT). Additionally, the FBT law allows ‘employee contributions’ to reduce the taxable value of the car’s Fringe Benefits Tax.

    There are two ways to calculate Fringe Benefits Tax for motor vehicles:

    1. The statutory formula method
      1. The statutory formula method is based on the car’s cost price and has traditionally been more popular with business owners because it is a straightforward way of calculating your vehicle‘s FBT. A flat rate of 20% of the car’s base value is used, taking into account how many days of the year the vehicle is available for private use.
    2. The operating cost method
      1. The operating cost method is based on the costs of operating the car. It is commonly referred to as the ‘logbook method’ as it requires a business to use logbooks to record how much each vehicle is used for work purposes and how much for private use.
        When calculating vehicle FBT using the operating cost method, a logbook must be maintained for a period of 12 consecutive weeks for each vehicle and it should detail the purpose of each trip, how many kilometres were travelled and whether it was work-related or private. That logbook is then valid for the next five years, provided there is no meaningful change in the business pattern of use..
    How can I minimise vehicle Fringe Benefits Tax?

    With telematics, it’s easier to maintain logbook records as it automatically details trips taken and classifies trips as either business or personal and stores all records electronically. All trip data can then be viewed on an online reporting platform, reducing back-office administration.

    What is the advantage of an electronic Fringe Benefits Tax logbook over paper?

    Electronic FBT logbooks are typically more accurate as they remove the risk of human error that comes with manual entry and collects the data needed for FBT returns quickly and easily, saving time and labour.

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