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Repairs
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Maintenance
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Fuel
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Registration
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Insurance
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Leasing costs
Actual costs can be sourced from invoices, receipts or journal entries. Lease documents will provide lease costs.
Crash repair expenses that are met by an insurance company or another person legally responsible are not included in operating costs.
Other costs not included in actual costs.
To establish an accurate private use percentage, you need to keep a logbook for 12 weeks that are representative of the car’s business use. Generally, you only need to do this once every five years or when the pattern of usage changes.
You must keep the logbook for a 12-week period that is representative of a usual pattern of usage.
The phrase ‘representative of a usual pattern’ is important. If you under-estimate business usage, you’re over-estimating private usage. Then you’re potentially paying more fringe benefits tax than you should. On the other hand, if you over-estimate business usage you won’t be paying the right amount of tax and when discovered you’ll likely have a debt. So, accuracy is important.
To include employee contributions your employee needs to provide you with documentary evidence of the expenses, for example receipts or invoices. For oil and petrol costs, a declaration from the employee is enough. But the declaration must be in a form approved by the Commissioner of Taxation.
