Bookkeeper's Implementation Checklist – Budget 2026 Motor Vehicle FBT Changes
Phase 1 – Identify All Vehicles
☐ Prepare a complete vehicle register.
For each vehicle collect:
Registration number
Make and model
Purchase date
Cost
Employee/user assigned
Vehicle type (car, SUV, ute, van, EV, hybrid, etc.)
Phase 2 – Determine Actual Usage
For each vehicle ask:
☐ Is private use permitted?
☐ Who normally drives the vehicle?
☐ Is the vehicle used mainly for business or mainly for private purposes?
☐ Is travel limited to home-to-work commuting?
☐ Is the vehicle used between multiple worksites?
☐ Is the vehicle used on a farm?
☐ Are there written restrictions on private use?
Documents to collect
Vehicle policy
Employment agreement clauses
Driver declarations
Fleet management reports
GPS reports (if available)
Phase 3 – Assign an FBT Category
Create a working paper showing:
Vehicle | Employee | Proposed Category |Review Date|
☐ Assign category
☐ Document reasons
☐ Obtain client approval
☐ Save supporting evidence
Phase 4 – Update Accounting and Payroll Systems
Review existing FBT workpapers.
Consider adding:
Balance Sheet / Asset Register Information
FBT Category
Vehicle Classification Date
Vehicle User
FBT Working Paper Columns
Vehicle Category
Applicable Inclusion Percentage
Review Date
Supporting Documentation Reference
No new general ledger accounts are expected to be mandatory, but many firms will benefit from additional tracking fields.
Phase 5 – Annual Review Process
At year-end:
☐ Confirm vehicle user has not changed.
☐ Confirm vehicle use pattern has not changed.
☐ Confirm restrictions on private use remain in force.
☐ Review vehicles purchased during the year.
☐ Review vehicles disposed of during the year.
☐ Update FBT category if necessary.
Phase 6 – Client Communication
Send a questionnaire to all clients with vehicles.
Suggested questions:
Who uses each vehicle?
Is private use allowed?
Is the vehicle taken home overnight?
Is the vehicle used at multiple worksites?
Is the vehicle primarily used for farming activities?
Has vehicle usage changed during the year?
