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FBT Module Tutorial | March 2017

www.smartfleetaustralia.com.au

Contents

2

Topics Page Number

Aims of this Tutorial 3

Key Features of the FBT System 4

Section A. Preparing your Data for FBT Reporting• FBT Checklist

67

Section B. Setting the FBT Scene – ATO Factors• Employer Responsibilities• Definitions• FBT Calculation Methods• Statutory Rates

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101112

Section C. Generating your Reports• Setting Up Your Company FBT Profile• Selecting Vehicles as Not Applicable for FBT• Input Employee FBT Data• FBT Calculations – Vehicles• FBT Calculations – Divers • Run the Vehicle FBT Report• Run the Driver Payment Summary Report• The Driver FBT Toll Report

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Summary 33

• Provide an overview of the Smartfleet systems

FBT Module

• Demonstrate how the Smartfleet System captures the required data to

generate FBT reports

• Provide a step-to-step guide on how to generate FBT Reports


Aims of this Tutorial

3

• The Smartfleet FBT Module enables seamless capturing of information, as well as on

demand reporting of FBT.

• The system caters for both statutory formula and operating cost methods and

determines which method produces the lowest cost possible under FBT legislation.

• The system caters for calculations at Vehicle and Driver levels.

• The FBT module reduces the amount of time and effort in collating data and making

the calculations for FBT as well as being able to provide real-time FBT reporting.

•


Key Features of the FBT Module

4

• Captures & integrates vehicle data automatically

• Driver changes are captured for FBT reporting purposes

• “Real Time” FBT data and reporting

• Tracks all operating costs

• Identifies Cost Saving opportunities by comparing Statutory Formula Method with

Operating Cost Method recommending the cheaper of the two

• Generate key reports


Key Features of the FBT Module cont.

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6


Section A

Preparing your Data for FBT Reporting

Vehicle Costs

• Ensure all vehicle costs have been captured for the FBT year

• This enables comparative calculations to be made for both Statutory & Operating

Cost Methods

• Capture business use from complaint log book data

Driver Records

• Ensure drivers are correctly set up – assigned or not assigned

• Check the right drivers are allocated to the right vehicles

• Check that driver changes throughout the FBT period have been recorded

• Where relevant ensure drivers have completed compliant logbook records

Odometer Readings

• Capture odometer readings via fuel/service records

• Check for any inaccurate readings and update via the Vehicle Details page

• At the end of the FBT year ensure 31/03 odometer readings are recorded via the

‘Update Vehicle Odometer’ screen


FBT Checklist

7

8


Section B

Setting the FBT Scene – ATO Factors

As an employer that provides a car as a fringe benefit, you will need to:

• Calculate the taxable value of the car fringe benefit

▪ using the Statutory Formula Method, or

▪ using the Operating Cost Method

• Keep specific records for car fringe benefits

▪ employee contribution records

▪ percentage of business use records


Your Responsibilities

9

For FBT purposes a car is:

• A sedan, station wagon, panel van or utility

(including four-wheel drive vehicles)

• Any other goods-carrying vehicle with a

carrying capacity of less than one tonne

• Any other passenger-carrying vehicle

designed to carry fewer than nine

passengers


Definitions

10

For FBT purposes Private Use is:

• When a car is used for private purposes by the

employee or associate, or

• The car is available for the private use of the

employee or associate

• If a car is garaged at or near an employee’s

place of residence, it is taken to be available for

the employee’s private use, regardless of

whether or not the employee has permission to

use the car privately

• As a general rule, travel to and from work is

classed as private use of a vehicle

Statutory Formula Method

• The base value of the car

• The statutory percentage

• The number of days in the FBT

year the vehicle was available for

private use

• The number of days in the FBT year

• Any Employee contribution


FBT Calculation Methods

11

Operating Cost Method

• The total operating costs

▪ actual costs

▪ deemed costs

• The percentage of business use as per a

valid logbook*

• Any Employee contribution

*Log book records contain a record of business use and are usually

maintained for a continuous 12-week period. Odometer records are a record

of the total distance travelled during the same 12 weeks that log book

records are maintained, and the total distance travelled each year. The 12-

week period chosen should be representative of the car’s business use.

You can keep your log book for up to five years (assuming there is no major

change in the pattern of use). After the fifth year, you will need to keep a

new log book.

Information from the ATO website - www.ato.gov.au/general/fringe-benefits-

tax-(fbt)/in-detail/employers-guide/fringe-benefits-tax-record-keeping/


Statutory Rates

12

Distance travelled during the FBT year (1 April - 31 March)

Statutory rate*

Contracts entered into prior to 7.30pm (AEST) on 10 May 2011

From 1 April 2014

Less than 15,000km 26% 20%

15,000 to 24,999km 20% 20%

25,000 to 40,000km 11% 20%

Over 40,000km 7% 20%

*Multiplied by the FBT Base Value to determine a persons vehicle Fringe

Benefit Liability

13


Section C

Generating your FBT reports

This allows you to set up an FBT profile applicable to the employer’s structure for FBT

• Go to the FBT tab. Under FBT Setting, click FBT Profiles

• Individual profiles for each FBT year can be structured or one profile that runs continuously can be

set up

• Select the Input Tax Credit Date

• Select FBT Type. This enables you to select the appropriate level of FBT applicable to your

organization. All FBT calculations on vehicles and drivers are then projected depending on the

rebate or exemption levels nominated

▪ Exemption: Used where organisations have a predetermined amount that is exempt FBT

i.e. Health ($17,667 grossed up), PBI ($31,177 grossed up).

▪ Rebatable: Used where an organization is eligible for a rebate on FBT.

▪ Full FBT: The full rate of FBT that currently applies to most organisations. The current rate

(Year to 31st March 2017) is set at 49%


Setting Up your Company FBT Profile

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• Select the Drivers’ Gross Value Allocation Method.

• The FBT module will provide a company report for each allocated driver. Where more than

one driver uses a vehicle in an FBT period, an allocation of the vehicle FBT liability is

calculated for each driver

• There are 4 primary methods used to calculate the FBT charge per driver for cost allocation

▪ Time Based: Simply calculates the time each driver held the vehicle and divides this

amount accordingly

▪ Time & Odometer based: Looks at the time the vehicle was held and the distance

travelled and then applies the Statutory Fraction that applies to each driver. This

provides a fairer distribution method.

▪ Odometer Based: Simply calculates distance travelled by each driver in the vehicle

and divides this amount accordingly

▪ Business Usage Based: Looks at the time business usage percentage of each

driver in the vehicle and divides the amount accordingly

• You can select User Defined if you would like to define how you wish for the FBT cost to be

allocated. You can also select No Allocation for share/pool cars if this is appropriate for

your business


Setting Up your Company FBT Profile cont.

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• Select the FBT Data Input.

• The Smartfleet system enables certain data to be entered and manipulated either directly

into the calculation screen or via pre-set data, or a combination of the two methods:

▪ Employee Data Input Only: Enables employee data to be input into the Employee

Data Input screen

▪ Employee FBT Data Input & FBT Data Input: Enables the employee data to be

input into both the Employee FBT Data Input screen as well as directly to the screen

during individual vehicle calculations.


Setting Up your Company FBT Profile cont.

16


Customer FBT Profile screen

17

You can select Drivers’

Allocation Method from:

• Time based

• Time & Odometer based

• Odometer based

• Business usage based

• User Defined

• No Allocation for share/pool

cars

You can select FBT Type

from:

• Exemption

• Rebatable

• Full FBT

FBT system users can set vehicles to ‘No’ status to identify that these vehicles are exempt from FBT.

Example: Pool Vehicles, Buses, Heavy Commercial vehicles etc

• Go to the FBT tab. Under FBT Setting select Vehicle FBT Applicable Setting.

• Select one Business Unit at a time or all Business Units (selecting all may increase system load

time).

• On the right hand side of the screen select Yes or No indicating whether the vehicle is applicable

for FBT. When selecting No you must select a reason or they system will not save.

• Once you’ve selected for all vehicles, click Save All.

Note: Selecting vehicles as not applicable results in these vehicles showing N/A in the Vehicle FBT Calculation

report.


Setting Vehicles to Applicable or N/A for FBT

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Select Yes or No for

each vehicleIf No, select a reason

from the list

This function enables users to input Employee data. This information will then populate the

relevant fields on the FBT reports for Operating Cost Method.

• Go to the FBT tab. Under FBT Setting click onto Employee FBT Data Input

• Select one Business Unit at a time or all Business Units.

• Enter the details accordingly for each employee.

• You can save individually as you go or click on the Save All button.

• Employee Contribution: After tax payments towards the running costs of the vehicle.

• Days not available: Where the vehicle was not available for use by employees

• Vehicle Business Use Percentage based on valid logbook records

• Toll business use Percentage: If tolls are to be included, type in the business usage %

obtained from your records for that driver.

• The Roll Over function automatically carries over the contributions from the previous year.


Entering Employee FBT Data

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Employee FBT Data Input screen

20

Enter Employee Data

The system takes into account

drivers who have been in

multiple vehicles within an FBT

year


FBT Rates & Thresholds

21

This screen provides details on the

current FBT rates and thresholds

that are used for calculations

Once Employee FBT Data has been entered, this screen will show the FBT liability calculations

per vehicle for both SFM & OCM methods and automatically selects the cheapest

• Go to the FBT tab. Under Calculation click onto Vehicle FBT Calculation.

• Select the appropriate Business Unit and Driver types requires at the top of the screen.

• If no employee FBT data has been recorded via the Employee Data Input screen, the OCM

(Operating Cost Method) column will show as N/A. The system assumes SFM (Statutory Formula

Method) will be used and this figure is provided in the Payable column.

• Where employee data has been entered, the system will compare SFM and OCM and put a line

through the more expensive of the two. The Payable column will show the cheaper option based

on inputs to date.

• Before vehicle reports for FBT can be produced, all vehicles need to be Locked In by an FBT

user or Administrator.


FBT Calculations – Vehicles

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• At this stage you can use the Lock All button below. Clicking this button assumes all figures have

been checked and you are now ready to run FBT reports.

• However, if you had selected Employee FBT Data Input & FBT Data Input in your FBT profile,

you can at this stage compare FBT payable amounts between SFM and OCM calculations by

manually inputting data into the calculations fields.

• Select the vehicle you wish to compare and click on the Payable amount and this will take

you to the Calculation Detail page.

• This screen allows the user to compare the calculation breakdown between the two

reporting methods and to enter comparative vehicle and driver data if desired.

• Various direct inputs are provided, such as: Days Vehicle Available, Vehicle Running Costs

and Business Use.


FBT Calculations – Vehicles cont.

23

• As each input is entered/modified, the Gross Taxable Value is identified for both methods

and the system selects the lower of the two.

• Enter any employee contribution required to reduce the taxable value. Use the Edit Input

Data button at the bottom of the page to input contribution and business % usage.

• The system will calculate the cheaper of the two FBT methods and highlight the cheapest

with a green banner.

• You can now Lock this calculation.

• Once you’ve done all your calculations and comparisons don’t forget to Lock All on the

Vehicle FBT Calculation screen. The figures will turn green once completed.


FBT Calculations – Vehicles cont.

24


Vehicle FBT Calculation

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The system does the

calculations automatically and

puts a cross through the more

expensive of the two methods

By clicking on the Payable amount you can

access the Calculation Detail page which will

enable you to compare the calculation

breakdown between the two methods and to

enter comparative data

This section calculates the Driver’s Gross Taxable Allocation – Grossed Up Value for Payment

Summary Reports

• Make sure the FBT payable on vehicles has been locked in before proceeding to this section.

• Go to the FBT tab. Under Calculation click onto Driver FBT Calculation.

• Although the Gross Taxable amount for each driver will be calculated according to the method you

have selected in your FBT Profile, you can however select another method per vehicle at this

stage.

• Each driver calculation needs to be locked before the Payment Summary Report can be run.

• Once they’re locked the Edit function will appear.

• You’re now ready to run the Payment Summary Report.


FBT Calculations – Drivers

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Driver FBT Calculation

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The system takes into account

multiple drivers against a

vehicle within the FBT year.

Once Vehicle Calculations have been locked in the Vehicle FBT report can be generated.

• Go to the FBT tab. Under Reports click Vehicle FBT Report.

• Select one Business Unit or all Business Units.

• Vehicles reported under Statutory Formula Method are at the top of the report & vehicles

reported under the Operating Cost Method are towards the bottom of the report. They are

broken down by department and Account codes (if any).

▪ Type 1 FBT: Used when GST on purchase of vehicle is applicable.

▪ Type 2 FBT: Where no GST is applicable.

▪ Total Amounts: Gross Tax Value minus the Employee contribution = Gross Tax Value

subject to FBT. Gross up factors are used to determine Gross Up taxable value to which the

FBT rate is applied.


Run the Vehicle FBT Report

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The Vehicle FBT Report

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All reports can be

exported

The Report shows the SFM

and OCM sub totals and then

the Grand total amount

including Type 1 & 2 FBT

The Vehicle Report outlines all the

Statutory Formula Method

amounts first then the Operating

Cost Method amounts

Once Driver Calculations have been Locked In the Employee Payment Summary report can be

generated

• Go to the FBT tab. Under Reports click onto Driver Payment Summary Report.

• Select one Business Unit or all Business Units.

• The amounts show the Gross Taxable Value prior to and after any Employee Contribution is

applied.

• Any figure in red indicates the driver has paid a higher Employee contribution than the Taxable

Value for the particular vehicle – This amount can be transferred to the following FBT year.

• The Balance Contribution button attempts to redistribute the employee contribution across each

of the vehicles to ensure the contribution is used effectively.


Run the Driver Payment Summary Report

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The Driver Payment Summary Report

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All reports can be

exported

The report takes into account

multiple vehicles against a

driver within the FBT year


The Driver FBT Toll Report

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This report is designed to identify Toll way

expenses incurred by employees. The

system takes into account if multiple

vehicles were used by one employee and

the registrations are listed underneath the

employee name accordingly.

Prepare! Make sure all Driver & Vehicle administration has been implemented

Set Up your Company Profile

Allocate vehicles that are not applicable for FBT

Enter Employee FBT Data for Operating Cost Method Calculations

Do your Vehicle FBT Calculations & Lock In

Do your Driver FBT Calculations & Lock In

Run your Vehicle FBT Report

Run your Payment Summary Report

Run your Driver FBT Toll Report


In Summary…

33

Thank You


FBT Module - webfleet.com.au Guide... · FBT Module Tutorial ... • Capture business use from...

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