Record Your Vehicle Odometer Reading Before March 31
- Mar 30
- 2 min read
FBT Isn’t Just About Paying Tax
Most business owners assume:
“If I don’t owe FBT, then I don’t need to do anything.”
That’s where things go wrong.
Because lodging an FBT return is not just about paying tax.
It’s about proving that you don’t need to.
A Simple Step That Matters More Than You Think
As the Fringe Benefits Tax (FBT) year ends on March 31, there is one simple action every business with vehicles should take.
Record your odometer reading.
It takes less than a minute, but it plays an important role in keeping your records accurate and compliant.
What You Need to Do
On March 31, make sure you:
Take a clear photo of your vehicle’s odometer or dashboard.
Note the vehicle registration number.
Send the photo via email or message to your accountant or keep it safely on record.
This creates a dated record that can be used if your business is ever reviewed.
Why This Is Important
Odometer readings are not just a formality. They are part of how your vehicle usage is assessed under FBT.
If you are using the operating cost method, the reading helps determine total kilometres travelled and supports your logbook percentage.
If you are using the statutory method, the ATO still requires confirmation that the vehicle was held and used during the period.
For electric vehicles, even where FBT exemptions may apply, odometer readings are still needed to calculate the reportable fringe benefit amount that appears on employee income statements.
Increased Focus from the ATO
The Australian Taxation Office continues to increase its use of data analytics, particularly around businesses with company-registered vehicles.
This means that accurate and consistent records are becoming more important.
A simple photo with a date can provide a clear and reliable reference if needed.
A Small Habit That Prevents Bigger Issues
This is one of those tasks that feels minor but carries weight over time.
Without proper records, calculations become estimates.
With proper records, your position is clear and defensible.
Final Thought
FBT compliance is often about small, consistent actions.
Recording your odometer reading on March 31 is one of the simplest, yet most important.
If you are unsure how your vehicle usage affects your FBT position, or you want to ensure everything is recorded correctly:
👉 Book a quick consult and we can guide you through it.
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