Contract Insurance & FBT: Statutory

Insurance, FBT calculations, and declarations

Statutory

FBT Section

The FBT area presents summary information of the vehicle’s FBT cost for the year and displays Statutory method factors.

A summary of:

  • budgeted kilometres

  • actual kilometres

  • FBT costs

is shown along with a Target Odometer reading required to meet budgeted FBT costs.

If actual kilometres are not available, an annualised value is calculated (see below).

If the calculated Statutory Rate = 26% (maximum):

  • “Monthly FBT Minimum Kilometres to travel” = N/A

  • “Target odometer reading” = N/A

If Contracts / FBT Benefit Type = statutory, the value in:

  • FBT Reduced Value / Date

is applied in the 5th FBT year.

Annualised kms

Annualised kilometres are calculated by comparing:

  • Opening Reading

  • Last Reading

Kilometres per day are multiplied by the number of days in the FBT year (365 or 366).

Example

Opening Reading Date: 24/05/2006
Opening Reading: 2,732
Last Reading Date: 12/03/2007
Last Reading: 18,476

Kms travelled: 15,744
Days between readings: 293
Kms per day: 53.7338
Days this FBT year: 365
Annualised Kms: 19,613

Notes

Note 1 — Start of Year Date

  • Contract Start Date is used for first FBT period

  • 3rd Party Start overrides if present

  • Subsequent periods start 1 April

Note 2 — Opening Km Reading Logic

Priority order:

  1. Start Km reading on/after FBT start

  2. Maintenance odometer on/before FBT start

  3. Any valid odometer after FBT start

If multiple readings exist:

  • highest value is used

Refer to Estimated Odometer Calculation for details.

Operating Report

This report calculates FBT using the Operating (Log Book) Method, tracking vehicles over 12 months to determine business usage.

It can be emailed via scheduler jobs.

Selection Rules

Only included if:

  • Benefit Type = Operating

Business Usage Requirement

  • Contract must include Business Usage

Calculation Overview

The report calculates:

  • Private usage portion of costs

  • Lease + maintenance + recharges

  • Resulting FBT liability

Data Sources

Lease Costs

Included when:

  • Period is within report range

  • Period is posted

Other Costs (Maintenance)

Included when:

  • Odometer Date is within range

  • Posting Class: FBT Operating Method = ON

  • Group not blank or “Exclude”

  • Recharge = Y

  • Status ≠ deleted

Report Filters

Left Column

Year Ending (Date)

Defaults to next FBT year end.

Manager

Filters by Account Manager.

Group

Filters by Client Group.

Client

Multi-select supported (CTRL / SHIFT).

Contract Type

Multi-select supported.

Report Queue

  • Default: unchecked

  • If checked: queued for background processing

Right Column

Cost Centre

Options:

  • All (default)

  • Blank

  • Specific cost centre

Statutory Report

Displays FBT information grouped by:

  • Cost Centre

  • Client Code

where:

  • Benefit Type = statutory

Key Behaviour

  • Uses odometer + FBT data

  • Uses fbt_statutory derived library

  • Supports scheduled email delivery

Report Filters

  • Year Ending

  • Manager

  • Group

  • Client

  • Contract Type

  • Report Queue

  • Cost Centre

Header Fields

  • Client Name

  • Client Code

  • As At Date

  • Page Number

Body Fields

  • Cost Centre

  • Contract ID

  • Registration

  • Driver Name

  • Vehicle Description

  • Contract Type

  • Start Date

  • Suspend Date

  • FBT Value

  • Opening/Closing Km + Dates

  • Annual Km

  • Statutory Rate

  • Days Not In Use

  • Days Available

  • Reportable Benefit

  • FBT Amount

Optimal Report

Compares:

  • Statutory Method

  • Operating Method

and recommends lowest tax outcome.

Notes

  • Non-use days can be entered via Contract/Event

  • Uses same reduced value rules as Statutory report

Reduced Value Date

Represents:

  • 1/3 reduction of vehicle cost/lease value

  • Applied after 4 years

Rules

  • Applies from first day of FBT year after 4th anniversary

  • Introduced: 25/05/2020

  • Older contracts may be missing values

Affected Reports

  • FBT Per Driver

  • FBT Per Vehicle

  • FBT Statutory

  • FBT Optimal

  • Statutory Annual

  • Novated Driver reports

Quote Acceptance Logic

On acceptance:

  • FBT Reduced Value calculated (Statutory only)

Formula:

  • ROUND(value * (2/3), 2)

Settlement Logic

On settlement:

  • FBT Value / Reduced Value updated

  • Applies when:

    • Benefit Type = Statutory

    • Country = AUS

FBT Reduced Value Date Updates

Not directly editable.

Updated via:

  • Contract Start Date

  • 3rd Party Start Date

  • Derived system updates

Treatment Type (ATO Rules)

Default:

  • Standard

Possible:

  • EV Exempt Reportable

Conditions

  • Vehicle is FBT exempt

  • Base price below LCT threshold

  • Luxury Car Tax = 0

  • EV / eligibility rules met

Behaviour

Standard

  • ECM OR FBT payable displayed

EV Exempt Reportable

  • ECM disabled

  • FBT payable = 0

  • ECM = 0

Validation

If not exempt:

  • system warns before override