What Records Do I Need for an FBT Audit?

Essential Documents to Keep Your Business Compliant

If the ATO picks your company for an FBT review, preparation really matters. These checks confirm employee perks given directly or through related parties are properly recorded and taxed.

The positive side? No need to worry, provided you saved the correct documents.

In this guide, we show what papers are essential for an FBT check, such as these examples:

Invoices
Logs, particularly those used for vehicle perks
Employee declaration forms
Calculation worksheets

Here’s how we can look at it one piece at a time.

Why Record Keeping Matters for FBT

FBT covers perks given to staff, like vehicles from work, event tickets, borrowed money, or access to fitness centers; this includes anything that isn’t direct pay.

The ATO requires businesses to maintain correct, full records that are current; these must back up:

Is the benefit tax-free or must it be declared?
The kind plus worth of every extra job perk
How the FBT liability was calculated

Mistakes or gaps in paperwork might result in fines, even a flawed FBT evaluation.

1. Invoices and Receipts

What to keep:

Invoices covering every fringe benefit given, such as leased vehicles, fuel costs, trips, meals, or event access
Payments given back to staff. Money handed out for work costs covered by workers
Proof of GST treatment (if applicable)

Why it matters:

The ATO could check claimed amounts by comparing them with your documents. As an illustration, when claiming a vehicle perk via the operating expense approach, proof like fuel receipts, coverage statements, or maintenance bills must back up overall usage expenses.

Hint: Digital versions like scans or files saved online through Xero work fine; make sure they’re clear also well sorted.

2. Vehicle Logbooks (for Car Fringe Benefits)

If your firm offers vehicles, the ATO usually needs a proper logbook, which helps figure out how much is used for work versus personal trips.

Key logbook requirements:

Must span 12 weeks straight unless the legal method applies instead
Must log the distance shown on the meter, the day of travel, reason for going, where you left from, and arrived at, as well as overall kilometers driven per journey
Needs refreshing every five years or earlier if driving habits shift notably

No logbook? Then use the legal method, which demands odometer records along with registration papers.

3. Employee Declaration Forms

Such statements clarify if a perk counts as exempt, gets lowered, or requires worker payments instead.

Common declarations include:

Staff Payment Statement (SPS) applies when workers cover some expenses, such as personal use of a company vehicle
No private use claims for cars stored at the workplace or solely for company tasks
Food events plus asset reports needed for lower tax assessments
Remote housing statements to check if homes qualify for exceptions

These documents need a signature prior to submitting your FBT form. ATO won’t accept late-signed ones.

4. FBT Calculation Worksheets & Working Papers

Should you choose to use software when preparing your FBT return, the ATO still requires you to maintain records. This applies regardless of the digital tools used. While automation helps, proper documentation remains essential under tax rules

Detailed spreadsheets or working documents that display:
Benefit category together with approach applied (for example, legal calculation compared to running expenses)
Grossed-up values
Type 1 compared to Type 2 in terms of benefits
Staff inputs included (where applicable)
GST handling along with claimed input tax deductions

These sheets show your math is correct, and also stand up to scrutiny when challenged.

Bonus: Other Helpful Records

Though not required every time, such papers may boost your standing if audited

Board meeting records confirming perks
Work agreements or rules that explain what benefits you get
Details on the ways staff were informed about their perks
Evidence showing staff were trained internally on FBT rules or had check-ins to ensure alignment

How D & B Accountants Can Help

At D & B Accountants Pty Ltd, our professionals hold CPA certification while being registered with the ATO; they assist companies nationwide in managing FBT duties, starting with documentation procedures through to handling audits.

We assist you:

Identify which benefits trigger FBT
Establish proper logbooks alongside reporting procedures
Set up precise FBT filings along with complete documentation
Act on your behalf during ATO checks or assessments

Act before the audit call arrives. Sort your FBT documents today, then relax with confidence, fully prepared if scrutiny comes.

🎁 Refer 2 new clients (not immediate family or existing clients) and get your 2024–25 Individual Tax Return done for FREE (up to $140 value).
Let’s make compliance simple and rewarding.

Contact us now for a private FBT review available in Pakenham, across Tasmania, or wherever you are. Reach out anytime for support tailored to your needs instead of generic advice.