You can choose from 2 methods to calculate your obligation.

1. Statutory formula method
2. Operating costs method

The methods require different records to be kept. Generally speaking, the operating costs method will result in a lower car FBT obligation. While there are more records needed, you’d likely be keeping most of the records anyway as good business practice and also to support claims for deductions on your income tax return.  

Watch this video for an example of the potential difference in FBT obligation between the 2 methods.