Class Ruling CR 2019/50

What this ruling is about: 1. This Ruling sets out when the Helpten Pro Vehicle Telematics Solution ( Helpten Pro ) can be utilised to reduce the operating costs in both a logbook and non-logbook year of tax for the purposes of calculating the fringe benefits tax taxable value of a car fringe benefit using the cost basis method. 2. Broadly, sections 10A [1] and 10B allow an employer to reduce the operating cost of a car for business journeys that are undertaken in the car during the period in which the car was held (either by the employer or another person). Such a reduction can only occur where certain conditions are met. 3. Full details of Helpten Pro are set out in paragraphs 20 to 32 of this Ruling. Note: By issuing this Ruling, the ATO is not endorsing this product. Potential purchasers or users must form their own view about the product. Who this Ruling applies to 4. This Ruling applies to you if you are an employer who uses Helpten Pro to keep logbook and odometer records for the purposes of calculating the taxable value of a car fringe benefit using the cost basis method. When this Ruling applies 5. This Ruling applies from 31 July 2019 to 31 March 2022. Background to legislative requirements 6. Section 10 allows employers to elect to calculate the taxable value of a car fringe benefit using the cost basis method (operating cost method). 7. Where the election is made, the taxable value of the car fringe benefit using the operating cost method is calculated according to the formula in subsection 10(2). In accordance with this formula, an employer intending to claim a reduction in the operating cost of a car, on account of business journeys undertaken during the holding period, must meet the requirements of either section 10A (if the year is a 'log book year of tax' (as defined in subsection 136(1))) or section 10B (if the year is not a 'log book year of tax'), as applicable. 8. Section 10A requires that in a logbook year: 9. Section 10B requires that in a non-logbook year: Logbook year of tax 10. A year in which the Helpten Pro is used will be a 'log book year of tax' if: 11. The subsequent four years will be a 'non-logbook year of tax' if either of the points in paragraph 10 of this Ruling apply to the first year. 12. Helpten Pro's Trip Report must be retained for at least five years. [4] Logbook records 13. Helpten Pro's Trip Report is a document which satisfies the requirements of the definition of 'log book records' in subsection 136(1), as over the time the Trip Reports are being kept [5] : Odometer records 14. Helpten Pro's Trip Report is a document which satisfies the requirements of the definition of 'odometer records' [6] as it provides details of the odometer reading for the car at the start of the journey and also the odometer reading for the car at the end of the journey that was undertaken during each reporting period. Business kilometres and business use percentage 15. Helpten Pro's calculation of the number of business kilometres and the total number of kilometres travelled by a car satisfies the requirements necessary for you to: Satisfaction of the requirements in section 10A in a logbook year of tax 16. You satisfy the requirements in section 10A and are entitled to claim a reduction of operating costs in a logbook year of tax on account of business journeys made in the car during the period you own or lease the car if you use Helpten Pro continuously: 17. If you, in a logbook year of tax, use Helpten Pro continuously for: you satisfy the requirements in section 10A and are entitled to claim a reduction of operating costs on account of business journeys made in the car during the period you own or lease the car provided you: Satisfaction of the requirements in section 10B in a non-logbook year of tax 18. If you use Helpten Pro continuously for the whole period that you own or lease the car, you will meet all the necessary requirements of section 10B in a non-logbook year of tax and are entitled to claim a reduction of operating costs on account of business journeys made in the car during the period you own or lease the car as the Trip Report and/or Helpten Pro : 19. If you, in a non-logbook year of tax use Helpten Pro continuously for an 'applicable logbook period' but: you satisfy the requirements in section 10B and will be entitled to claim a reduction of operating costs of the car on account of business journeys made in the car during the period you own or lease the car provided you: 20. The following description of the scheme is based on information provided by the applicant. If the scheme is not carried out as described, this Ruling cannot be relied upon. 21. The Helpten Pro is a cloud-based logbook system which can be used to log the journeys of a vehicle during a pre-determined period. You install the Helpten Pro logbook solution to cars you own and lease that you elect to value using the cost basis method and it remains implemented in the car for the entire period the car is owed or leased by you. 22. Helpten Pro is a Vehicle-Telematics-as-a-Service-system (VTaaS). A telematics device is installed in the car and records, stores and sends trip data to a cloud-based remote data management platform (the Platform) over a secure communication network at a configurable interval (for example, every 30 seconds). The Platform is managed by Drive Tech Australia Pty Ltd. In circumstances where network connectivity is not available, the data is stored in the device until the next time network connectivity is available. The devices are also battery back-upped and monitored for deliberate/accidental disconnect and malfunctions, and these are recorded for the vehicle use reporting. 23. The Platform, connected to each on-board device, receives, processes, reports and stores all journey information (including GPS-based distance). The Platform processes vehicle use data entered and generates a log for the specific vehicle telematics device for each individual driver. Part of the processing includes collation of various entries to create individual trips referred to in Helpten Pro as a Trip Report. 24. You and your employees access the vehicle use data and reports stored on the Platform using available web and mobile applications, with access based on your respective role and defined access rights. 25. The Platform permanently stores the vehicle use data and, relevantly, allows for the following: 26. Helpten Pro calculates and displays (both online and through reports generated via the Platform in Adobe Acrobat PDF or Microsoft Excel format) the 'business use percentage' and 'personal use percentage' with the percentage calculated using the following formulas: Business percentage [ Number of business kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period ] * 100 Personal percentage [ Number of personal kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period ] * 100 27. Helpten Pro calculates both the number of business kilometres and the total number of kilometres travelled by the car during the period where the car was owned or leased by you for the whole year thereby calculating the business use percentage. 28. Helpten Pro records and saves every vehicle trip in the Platform for a minimum period of seven years. Helpten Pro Trip Report 29. You, at any stage, can retrieve a progress report of trip data outlining all trips completed during the logbook period. You can then use the information contained within Helpten Pro to generate a Trip Report on demand as required, which details each individual journey undertaken by each car. 30. The Trip Report provides the following information for each journey undertaken in the selected period: 31. You will use Helpten Pro to produce, in English, a Trip Report for any selected period for each vehicle that has the telematics device fitted and/or each employee who uses the vehicle that has the telematics device fitted. 32. The Trip Report also provides details of the calculated business use percentage for the selected period based on the information contained in Helpten Pro. Commissioner of Taxation 4 September 2019 © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). Not previously issued as a draft.

Class of entities or scheme: 20. The following description of the scheme is based on information provided by the applicant. If the scheme is not carried out as described, this Ruling cannot be relied upon. 21. The Helpten Pro is a cloud-based logbook system which can be used to log the journeys of a vehicle during a pre-determined period. You install the Helpten Pro logbook solution to cars you own and lease that you elect to value using the cost basis method and it remains implemented in the car for the entire period the car is owed or leased by you. 22. Helpten Pro is a Vehicle-Telematics-as-a-Service-system (VTaaS). A telematics device is installed in the car and records, stores and sends trip data to a cloud-based remote data management platform (the Platform) over a secure communication network at a configurable interval (for example, every 30 seconds). The Platform is managed by Drive Tech Australia Pty Ltd. In circumstances where network connectivity is not available, the data is stored in the device until the next time network connectivity is available. The devices are also battery back-upped and monitored for deliberate/accidental disconnect and malfunctions, and these are recorded for the vehicle use reporting. 23. The Platform, connected to each on-board device, receives, processes, reports and stores all journey information (including GPS-based distance). The Platform processes vehicle use data entered and generates a log for the specific vehicle telematics device for each individual driver. Part of the processing includes collation of various entries to create individual trips referred to in Helpten Pro as a Trip Report. 24. You and your employees access the vehicle use data and reports stored on the Platform using available web and mobile applications, with access based on your respective role and defined access rights. 25. The Platform permanently stores the vehicle use data and, relevantly, allows for the following: 26. Helpten Pro calculates and displays (both online and through reports generated via the Platform in Adobe Acrobat PDF or Microsoft Excel format) the 'business use percentage' and 'personal use percentage' with the percentage calculated using the following formulas: | Business percentage: [ Number of business kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period ] * 100 | Personal percentage: [ Number of personal kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period ] * 100 27. Helpten Pro calculates both the number of business kilometres and the total number of kilometres travelled by the car during the period where the car was owned or leased by you for the whole year thereby calculating the business use percentage. 28. Helpten Pro records and saves every vehicle trip in the Platform for a minimum period of seven years. | Helpten Pro Trip Report: 29. You, at any stage, can retrieve a progress report of trip data outlining all trips completed during the logbook period. You can then use the information contained within Helpten Pro to generate a Trip Report on demand as required, which details each individual journey undertaken by each car. 30. The Trip Report provides the following information for each journey undertaken in the selected period: 31. You will use Helpten Pro to produce, in English, a Trip Report for any selected period for each vehicle that has the telematics device fitted and/or each employee who uses the vehicle that has the telematics device fitted. 32. The Trip Report also provides details of the calculated business use percentage for the selected period based on the information contained in Helpten Pro. Commissioner of Taxation 4 September 2019 © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Ruling: 1. This Ruling sets out when the Helpten Pro Vehicle Telematics Solution ( Helpten Pro ) can be utilised to reduce the operating costs in both a logbook and non-logbook year of tax for the purposes of calculating the fringe benefits tax taxable value of a car fringe benefit using the cost basis method. 2. Broadly, sections 10A [1] and 10B allow an employer to reduce the operating cost of a car for business journeys that are undertaken in the car during the period in which the car was held (either by the employer or another person). Such a reduction can only occur where certain conditions are met. 3. Full details of Helpten Pro are set out in paragraphs 20 to 32 of this Ruling. Note: By issuing this Ruling, the ATO is not endorsing this product. Potential purchasers or users must form their own view about the product. | Who this Ruling applies to: 4. This Ruling applies to you if you are an employer who uses Helpten Pro to keep logbook and odometer records for the purposes of calculating the taxable value of a car fringe benefit using the cost basis method. | When this Ruling applies: 5. This Ruling applies from 31 July 2019 to 31 March 2022. | Background to legislative requirements: 6. Section 10 allows employers to elect to calculate the taxable value of a car fringe benefit using the cost basis method (operating cost method). 7. Where the election is made, the taxable value of the car fringe benefit using the operating cost method is calculated according to the formula in subsection 10(2). In accordance with this formula, an employer intending to claim a reduction in the operating cost of a car, on account of business journeys undertaken during the holding period, must meet the requirements of either section 10A (if the year is a 'log book year of tax' (as defined in subsection 136(1))) or section 10B (if the year is not a 'log book year of tax'), as applicable. 8. Section 10A requires that in a logbook year: 9. Section 10B requires that in a non-logbook year: | Logbook year of tax: 10. A year in which the Helpten Pro is used will be a 'log book year of tax' if: 11. The subsequent four years will be a 'non-logbook year of tax' if either of the points in paragraph 10 of this Ruling apply to the first year. 12. Helpten Pro's Trip Report must be retained for at least five years. [4] | Logbook records: 13. Helpten Pro's Trip Report is a document which satisfies the requirements of the definition of 'log book records' in subsection 136(1), as over the time the Trip Reports are being kept [5] : | Odometer records: 14. Helpten Pro's Trip Report is a document which satisfies the requirements of the definition of 'odometer records' [6] as it provides details of the odometer reading for the car at the start of the journey and also the odometer reading for the car at the end of the journey that was undertaken during each reporting period. | Business kilometres and business use percentage: 15. Helpten Pro's calculation of the number of business kilometres and the total number of kilometres travelled by a car satisfies the requirements necessary for you to: | Satisfaction of the requirements in section 10A in a logbook year of tax: 16. You satisfy the requirements in section 10A and are entitled to claim a reduction of operating costs in a logbook year of tax on account of business journeys made in the car during the period you own or lease the car if you use Helpten Pro continuously: 17. If you, in a logbook year of tax, use Helpten Pro continuously for: you satisfy the requirements in section 10A and are entitled to claim a reduction of operating costs on account of business journeys made in the car during the period you own or lease the car provided you: | Satisfaction of the requirements in section 10B in a non-logbook year of tax: 18. If you use Helpten Pro continuously for the whole period that you own or lease the car, you will meet all the necessary requirements of section 10B in a non-logbook year of tax and are entitled to claim a reduction of operating costs on account of business journeys made in the car during the period you own or lease the car as the Trip Report and/or Helpten Pro : 19. If you, in a non-logbook year of tax use Helpten Pro continuously for an 'applicable logbook period' but: you satisfy the requirements in section 10B and will be entitled to claim a reduction of operating costs of the car on account of business journeys made in the car during the period you own or lease the car provided you: 20. The following description of the scheme is based on information provided by the applicant. If the scheme is not carried out as described, this Ruling cannot be relied upon. 21. The Helpten Pro is a cloud-based logbook system which can be used to log the journeys of a vehicle during a pre-determined period. You install the Helpten Pro logbook solution to cars you own and lease that you elect to value using the cost basis method and it remains implemented in the car for the entire period the car is owed or leased by you. 22. Helpten Pro is a Vehicle-Telematics-as-a-Service-system (VTaaS). A telematics device is installed in the car and records, stores and sends trip data to a cloud-based remote data management platform (the Platform) over a secure communication network at a configurable interval (for example, every 30 seconds). The Platform is managed by Drive Tech Australia Pty Ltd. In circumstances where network connectivity is not available, the data is stored in the device until the next time network connectivity is available. The devices are also battery back-upped and monitored for deliberate/accidental disconnect and malfunctions, and these are recorded for the vehicle use reporting. 23. The Platform, connected to each on-board device, receives, processes, reports and stores all journey information (including GPS-based distance). The Platform processes vehicle use data entered and generates a log for the specific vehicle telematics device for each individual driver. Part of the processing includes collation of various entries to create individual trips referred to in Helpten Pro as a Trip Report. 24. You and your employees access the vehicle use data and reports stored on the Platform using available web and mobile applications, with access based on your respective role and defined access rights. 25. The Platform permanently stores the vehicle use data and, relevantly, allows for the following: 26. Helpten Pro calculates and displays (both online and through reports generated via the Platform in Adobe Acrobat PDF or Microsoft Excel format) the 'business use percentage' and 'personal use percentage' with the percentage calculated using the following formulas: | Business percentage: [ Number of business kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period ] * 100 | Personal percentage: [ Number of personal kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period ] * 100 27. Helpten Pro calculates both the number of business kilometres and the total number of kilometres travelled by the car during the period where the car was owned or leased by you for the whole year thereby calculating the business use percentage. 28. Helpten Pro records and saves every vehicle trip in the Platform for a minimum period of seven years. | Helpten Pro Trip Report: 29. You, at any stage, can retrieve a progress report of trip data outlining all trips completed during the logbook period. You can then use the information contained within Helpten Pro to generate a Trip Report on demand as required, which details each individual journey undertaken by each car. 30. The Trip Report provides the following information for each journey undertaken in the selected period: 31. You will use Helpten Pro to produce, in English, a Trip Report for any selected period for each vehicle that has the telematics device fitted and/or each employee who uses the vehicle that has the telematics device fitted. 32. The Trip Report also provides details of the calculated business use percentage for the selected period based on the information contained in Helpten Pro. Commissioner of Taxation 4 September 2019 © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). Not previously issued as a draft.




What this Ruling is about | If this Ruling applies to you, and you correctly rely on it, we will apply the law to you in the way set out in this Ruling. That is, you will not pay any more tax or penalties or interest in respect of the matters covered by this Ruling. | Further, if we think that this Ruling disadvantages you, we may apply the law in a way that is more favourable to you.


Legislative references: FBTAA 1986 FBTAA 1986 10 FBTAA 1986 10A FBTAA 1986 10B FBTAA 1986 10(2) FBTAA 1986 123(2) FBTAA 1986 136(1) FBTAA 1986 162 FBTAA 1986 162F FBTAA 1986 162G(1)(a) FBTAA 1986 162G(1)(b) FBTAA 1986 162H(1) TAA 1953