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FBT Vehicle Log 02.book Requirements 2026


Ensuring Compliance with FBT Vehicle Log Book Rules 2026


As we approach the end of the Fringe Benefits Tax (FBT) year on 31 March 2026, it’s the perfect time to check that you’re meeting all FBT vehicle log book requirements 2026. Keeping a clear and accurate 12-week log book ensures you stay compliant, avoid unnecessary tax, and confidently claim the correct business-use percentage for your vehicle.


If you haven’t started your log book yet, now is the ideal time to begin.


FBT vehicle log book requirements 2026
Reviewing vehicle records inside the car to ensure accurate and compliant log book entries for FBT reporting in 2026.

  1. What is FBT?


Fringe Benefits Tax (FBT) is a tax paid by employers on certain benefits provided to employees (or their associates) in place of or in addition to salary or wages. When a business-owned vehicle is available for private use, including everyday travel like driving between home and work; FBT may apply.

Understanding the FBT vehicle log book requirements 2026 helps ensure these non-cash benefits are taxed fairly and accurately.


  1. When a log book is required


A log book is essential when using the operating cost method to calculate the taxable value of a car fringe benefit. You must complete a compliant 12-week log book if:

  • The vehicle is available for any private use

  • You intend to claim a business-use percentage

  • Your previous log book has expired (valid for up to five FBT years)

  • Your driving pattern has changed since the last log book was completed


  1. Why keeping a log book matters


A high-quality log book gives you confidence that:

  • Your business-use percentage is calculated fairly

  • You’re not paying more FBT than required

  • You have clear, defensible evidence in the event of an ATO review

  • You remain fully compliant under the FBT vehicle log book requirements 2026


  1. Consequences of not keeping a log book


If you don’t keep a valid log book:

  • You cannot use the operating cost method

  • The ATO requires you to apply the statutory formula method (20% private use)

  • You may end up paying significantly more FBT

  • You risk ATO adjustments, penalties, and interest in an audit


  1. What to include in a compliant 12-week log book (FBT vehicle log book requirements 2026)


Your log book must include:

Vehicle details:

  • Make, model and registration number

  • Opening and closing odometer readings for the 12-week period


Business trip details:

  • For each business-related journey, record:

  • Date of the trip

  • Starting and ending kilometres

  • Total kilometres travelled

  • Purpose of the trip

Private travel:

You only need to record odometer readings for private use. There is no need to detail each private trip.

Kilometre totals:

  • Total business kilometres

  • Total private kilometres

  • Calculated business-use percentage

Driver declaration:

A brief confirmation that the log book reflects a typical pattern of travel.


  1. Action required


If you have not yet begun your log book for the 2025–26 FBT year, this is your reminder to start as soon as possible so you meet the FBT vehicle log book requirements 2026 before 31 March 2026.

If you already have a valid log book from previous years, check whether your driving pattern has changed. If it has, a new log book is required.

Need help or want peace of mind? Book an appointment with our team today. We’re here to guide you through the FBT vehicle log book requirements 2026 and ensure you’re fully compliant and prepared.


Disclaimer

This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.

Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder

Liability limited by a scheme approved under professional standards legislation.


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