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Company Car Fair Use

“Fair use”: personal use of company vehicles – how much is too much?

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Use of a company car is often perceived as a major perk for employees, negating the need to own their own vehicle and saving them thousands per year. Companies who want to attract and retain the best and brightest may offer incentives such as a company vehicle as an attractive part of salary packaging.  And for others it is an essential requirement of their day to day roles on the road.

Company vehicles kept at an employee’s home will naturally be used for personal trips, with the personal component attracting Fringe Benefits Tax (FBT). The ATO themselves recognise that ‘minor, infrequent and irregular‘ personal trips should be FBT exempt as an inevitable part of an employee benefit package.

In line with this, many organisations have a “fair use” policy that is often essentially trust based and means the employee can use the vehicle for personal use as long as they don’t go overboard.

The issues arise when what is understood as fair or compliant usage of a company vehicle differs greatly between the employee and the employer.  This isn’t always the employees fault. If employer expectations and compliance issues are poorly communicated to them – or not communicated at all – then organisations leave themselves wide open to either abuse or misunderstandings.

For example, from an FBT perspective, the ATO currently stipulates that commuting to and from work is classed as personal use*, but yet many employees are either unaware of this or they simply claim it anyway.

Then there’s the cost to your bottom line.  If your company policy stipulates that fair use of the vehicle is, for example, 5% of personal use how are you monitoring that?  An internal audit using eLogbook, paper logbooks or similar will enable you to find the answers.

“We have had customers who believed their employees’ fair personal use was around 5-10% and were shocked to find it was actually 45%.  Whatever the size of your fleet, that can end up being a significant cost to your business.” 

Darren Playle, GM, GPSi Group

It’s critical to have clear internal policies about what is acceptable use in your organisation and what is not.  Ensure these policies are communicated when on-boarding new staff, and refresh expectations to your people at the beginning of every financial year.

Telematics can make life easier for you to track costs. Using eLogbook is a seamless process for your employees to record mileage and purpose of trip through an easy-to-use app.  Even the most technophobic employee will find it easy! (Take a look at our simple and short video tutorials).

Company car usage can be an important part of your overall employee value proposition, particularly in a marketplace where it can be increasingly difficult to attract and retain quality performers.  That does, however, require weighing up against unsustainable costs to the business in fleet management.

Fairness and communicating clear expectations are imperative in order to get the balance right between an engaged and valued workforce, and ensuring a strong bottom line that benefits everyone.

If you’d like to make efficiencies in your fleet, we have a number of cost-effective solutions – or we can show you how to optimise your existing solutions – call us on 1300 GET GPS (438 477) or email us.

 

* (Although FBT guidelines may change in the next financial year, as the ATO have issued new draft guidelines on determining private use of company vehicles. These are not yet finalised).

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Here to help! GPSi Customer Support

We’re here to help!

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While we’re expanding here at GPSi, we want to make sure we continue to provide you with outstanding customer support and service.  We know you’re busy and when you have a query, you need an answer straight away.

To enable that, we’ve created a central point of customer contact for all queries; by phone: 1300 (GET GPS) 438 477 or email: helpdesk@gpsi.com.au. This will ensure your email or phone query will be attended to in the quickest possible time and by the most appropriate person.

We will also have some frequently asked questions up on our website shortly, based on the most common customer queries that we receive.

If you have any other suggestions about what you’d like to see from our customer support please drop us a line at: helpdesk@gpsi.com.au  We’d love to hear how we can support you better.

 

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Are your logbooks FBT ready?

Fair use – personal use of company vehicles – how much is too much? 

Car Logbook App

Are your logbooks FBT ready?

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FBT time is only a few short months away with submission on 21 May (later if you submit through a tax agent).  With the FBT year running from 1 April to 31 March, now is a critical time to get prepared to enable a smooth FBT submission process.

Let’s face it, not everyone is a huge fan of tax time but eLogbook takes away a lot of the FBT pain many organisations face in this period. However, it’s important to ensure your people are using it correctly to get accurate data and for compliance purposes.

To help you, we’ve recently developed some short videos to quickly and easily explain to users how to get the most out of eLogbook.  Forward them on to your teams so FBT time is as pain free as possible in your organisation!

Refresh your eLogbook training

Duration (3:34 mins): link

logbook video1

 

Adding a New eLogbook User + Assigning their permission level as user driver

Duration (2:23 mins) link

adding a new elogbook user

 

 

 

 

 

Assigning trips using the eLogbook app

Duration (49 secs) link

assigning trips

 

Assigning Trips via the eLogbook Email

Duration (55 secs) link

 

assigning trips email

 

 

 

 

These videos are designed to make eLogbook even easier for your staff to use.

Don’t get caught out!  The countdown is on to make sure your logbooks are in order before FBT lodgement. eLogbook has been providing electronic logbooks for commercial fleets for over 8 years now, saving companies tens of thousands off their FBT returns.

To learn more about eLogbook, visit our website: elogbook.com.au

If you’d like some support using eLogbook give our friendly team a call on 1300 438 477 or drop us a line at enquiry@elogbook.com.au

 

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Personal use of company vehicles – how much is too much?

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Lone Worker Satellite Device

GPSi takes on a new approach to Iridium satellite tracking

Posted by.. | Featured, hardWARE, Press Release, smartWARE | No Comments

The introduction of dual mode Bluetooth technology including BT 4.0 to the Roadscout® device has enabled the introduction of our smartTRAX Iridium satellite tracking technology. smartTRAX provides the RoadScout  product range with ‘grab and go’ satellite connectivity for vehicle telematics in places where GSM coverage is unavailable.

Further enhancing the offering, the smartTRAX device will automatically perform as a personal tracking device when removed from the vehicle ensuring the safety of your ‘lone workers’ in the field.

This seamless and wireless functionality replaces conventional wired solutions and ensures vehicles and staff can be tracked in the most remote locations with confidence. The package provides fleet managers with an opportunity to seamlessly support additional features such as duress alarms and two messaging whilst supporting all aspects of our current IVMS platform  including driver behaviour and vehicle alerts.

Incorporating a long-life lithium rechargeable battery, the durable and shock resistant smartTRAX will provide organisations with a cost-effective option to extend the safe working environment of field staff.

Book a Road Test, or Simply Drop Us a Line Click Here