Class Ruling CR 2017/76
Date of effect: 1 April 2017

What this ruling is about: 1. This Ruling sets out the Commissioner's opinion on the way in which the relevant provision(s) identified below apply to the defined class of entities, who take part in the scheme to which this Ruling relates. Relevant provision(s) 2. The relevant provisions dealt with in this Ruling are: All references in this Ruling are to the FBTAA unless otherwise stated. Class of entities 3. The class of entities to which this ruling applies is those employers who use EZY2C (a division of Fleet Logistics Pty Ltd, herein referred to as 'EZY2C') telematics system (EZY2C GPS Tracking System) for car log book record and odometer record keeping requirements. Qualifications 4. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. 5. The class of entries defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 8 to 26 of this Ruling. 6. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then:

Class of entities or scheme: 3. The class of entities to which this ruling applies is those employers who use EZY2C (a division of Fleet Logistics Pty Ltd, herein referred to as 'EZY2C') telematics system (EZY2C GPS Tracking System) for car log book record and odometer record keeping requirements. | Qualifications: 4. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. 5. The class of entries defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 8 to 26 of this Ruling. 6. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 7. This ruling applies from 1 April 2017 to 31 March 2022. The Ruling continues to apply after 31 March 2022 to all entities within the specified class who entered into the specified scheme during the term of the Ruling. However, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). 8. The following description of the scheme is based on information provided by the applicant. The following documents, or relevant parts of them, form part of and are to be read with the description: 9. EZY2C has developed a wide range of the most advanced GPS Tracking devices and accessories as a means of recording car log book entries. Solutions include 3G, Next G, Satellite and Hybrid (herein referred to as a 'telematics solution'). 10. A key attribute of EZY2C's telematics solution allows car locations to be accurately tracked (and remotely recorded) using GPS locations. This information feeds back to a centralised database, which then allows the employers to view and download log book and odometer records. 11. The EZY2C telematics solution consists of an in-vehicle telematics device which has a built in GPS receiver that is used for capturing GPS locations. The in-vehicle telematics device is hardwired to the electronics system of the car or plugged into the OBDII Port. 12. The GPS locations are captured, then used to calculate odometer readings (distance travelled) of the particular car. 13. For each journey completed, EZY2C telematics device records: 14. Specifically, the EZY2C telematics device: 15. In the event the EZY2C telematics device is operating within an area in which 3G coverage is not available, it stores the data on-board and automatically transmits the stored data back to the centralised telematics platform (EZY2C database) when access to 3G communication coverage is restored. 16. The EZY2C telematics system provides customers with two easy options to capture business or private journey declarations for the purpose of electronic log book journey reporting. 17. The functionality available to EZY2C's customers is for each driver to use either EZY2C's 'Mobile/tablet' platform called EZYVIEW (a mobile and tablet responsive portal) or logging into EZY2C's online portal via its website to manually select whether a journey has been undertaken for business or private purposes. 18. An employee logs in via either EZYVIEW or EZY2C's online portal, and identifies themselves as the applicable driver of the car for that journey by linking their journey. In the event the telematics device is moved to another vehicle, customers contact EZY2C to reactivate the device in the new (replacement) vehicle. 19. In the event that an employee does not input the nature of the particular journey undertaken (that is, for business or private purposes), the EZY2C telematics system will automatically allocate the journey as being for private purposes. | Trip Report: 20. The employer can then use the information contained within the EZY2C database to generate a 'Trip Report' on a weekly basis at minimum or on demand as required, which details each individual journey undertaken by each vehicle. 21. The 'Trip Report' provides the following information for each journey undertaken in the selected period: 22. In relation to the trip purpose, each EZY2C client can customise the trip purpose reason in the Trip Report to suit their own business. That is, EZY2C clients may wish to have any number of trip purposes all relating to the business usage, for example client care visit, call out trip, delivery, etcetera. 23. An employer will use the EZY2C system to produce, in English, a 'Trip Report' for any selected period for each car that has the system fitted and/or each employee who uses the car that has the system fitted. | FBT Logbook Report: 24. Further to the above, the employer can then use the information contained to generate a 'FBT Logbook Report' which provides details of the calculated business use percentages for the selected period. 25. The FBT Logbook Report provides: 26. Employers using the EZY2C GPS Tracking System will make an election to treat a current year of tax as a 'log book year of tax'. 27. The Trip Report and the FBT Logbook Report (together referred to as the EZY2C GPS Tracking System report) satisfy the definition of 'log book records' in subsection 136(1) provided: 28. The EZY2C GPS Tracking System report satisfies the definition of 'odometer records' in subsection 136(1). 29. An employer in a log book year of tax who uses the EZY2C GPS Tracking System continuously for: satisfies the requirement in section 10A and is entitled to claim a reduction of operating costs. 30. An employer in a log book year of tax who uses the EZY2C GPS Tracking System continuously for: satisfies the requirements in section 10A and is entitled to claim a reduction of operating costs provided the employer: 31. An employer in a non-log book year of tax that uses the EZY2C GPS Tracking System continuously for the whole of the holding period (as defined in section 162C), satisfies the requirements in section 10B and is entitled to claim a reduction of operating costs. 32. An employer in a non-log book year of tax who has used the EZY2C GPS Tracking System in one of the previous four FBT years continuously for an 'applicable log book period' but: satisfies the requirements in section 10B and will be entitled to claim a reduction of operating costs of the car on account of business journeys undertaken in the car during the holding period provided the employer: Commissioner of Taxation 8 November 2017 | Does the EZY2C GPS Tracking System report meet the relevant requirements of section 10A?: 33. Section 10A states: 34. Section 162G(1) sets out various circumstances under which a particular year can be treated as a 'log book year of tax' as follows: 35. It is accepted that employers using the EZY2C GPS Tracking System will make an election under paragraph 162G(1)(b) to treat a current year of tax as a 'log book year of tax'. | Does the EZY2C GPS Tracking System report satisfy the requirements of the definition of 'log book records'?: 36. Subsection 136(1) defines 'log book records' as: 37. The definition of 'log book records' in subsection 136(1) requires that the relevant record be a 'daily log book or similar document' and also the relevant entries are 'made in the English language at, or as soon as reasonably practicable after, the end of the journey.' 38. The EZY2C telematics device collects all applicable information for each journey undertaken by a car (that is, the location of the start and end of a journey, date and time of the start and end of a journey, purpose of each journey, kilometres travelled as per the GPS co-ordinates), and automatically sends it to EZY2C's centralised server. 39. The business use or private use details for the journey are input by each respective driver either through the use of EZYVIEW (mobile/tablet platform) or through EZY2C's online portal. The employer can then use the EZY2C GPS Tracking System to produce, in English, a 'Trip Report' and an FBT Logbook Report for the selected period. 40. Paragraph (d) of the definition of 'log book records', requires the respective odometer readings of the car at the beginning and at the end of the journey be entered into the relevant records. 41. The term 'odometer' is not defined in either the FBTAA or the Income Tax Assessment Act 1997 but the Macquarie Dictionary, online edition, defines that term as being, 'an instrument for measuring distance passed over, as by a motor vehicle.' 42. The term 'odometer records', as defined in subsection 136(1) makes reference to 'odometer readings of the car'. Whilst odometer readings must pertain to the car, it does not necessarily mean that they must also be attributable either wholly or in part to the rotation of the car's wheels, thereby mechanically moving the standard odometer fitted in the car by the manufacturer. 43. Each time the car is driven, the start and end odometer readings for the journey are automatically calculated by the EZY2C GPS Tracking System from the GPS and other telemetry data recorded. 44. It is accepted that the opening and closing odometer readings for each car journey detailed in the FBT Logbook Report satisfies the requirements of paragraph (d) of the definition of 'log book records.' 45. The EZY2C GPS Tracking System Trip Report and FBT Logbook report both record the following: thus satisfying paragraphs (c), (e) and (f) of the definition of 'log book records' in subsection 136(1). 46. It is considered that the EZY2C GPS Tracking System report is 'a daily log book or similar document' that satisfies the requirement of being made in the English language at or a soon as reasonably practicable after the end of the journey. 47. The report generated by the EZY2C GPS Tracking System satisfies the definition of 'log book records' in subsection 136(1) provided the report is completed for an 'applicable log book period'. 48. The definition of 'log book records' in subsection 136(1) also requires that each business journey recorded in the log book records be in relation to a 'period'. Paragraph 10A(a) refers to 'log book records' being maintained for an 'applicable log book period'. 49. The term 'applicable log book period' is defined in subsection 162H(1) as follows: 50. It is accepted that all employers using the EZY2C GPS Tracking System in relation to any car fringe benefits they provide will maintain the necessary records for the duration of the 'applicable log book period'. 51. It is accepted that the EZY2C GPS Tracking System report satisfies all the relevant requirements of the definition of 'log book records' as defined in subsection 136(1). | Does the EZY2C GPS Tracking System report satisfy the requirements of the definition of 'odometer records'?: 52. The term 'odometer records' is defined in subsection 136(1) as: 53. The definition of 'odometer records' in subsection 136(1) requires that odometer readings be recorded both at the 'commencement' and at the 'end' of the periods. 54. The EZY2C GPS Tracking System FBT Logbook Report provides details of the odometer reading for the car at the start of the first recorded journey and also the odometer reading for the car at the end of the last recorded journey that were undertaken during each report period. 55. As stated in paragraph 50 of this Ruling, it is accepted that all employers using the EZY2C GPS Tracking System in relation to any car fringe benefits they provide will maintain the necessary records for the duration of the 'applicable log book period'. 56. As stated in paragraph 46 of this Ruling, the report provided by the EZY2C GPS Tracking System meets the necessary requirement of having entries 'made in the English language at, or as soon as reasonably practicable after, the end of the journey'. 57. It is considered that the EZY2C GPS Tracking System report satisfies all the relevant requirements of the definition of 'odometer records' as defined in subsection 136(1). 58. Paragraph 10A(b) requires odometer records to be maintained for the holding period as defined in section 162C. 59. The EZY2C GPS Tracking System will provide odometer records for the period of the year in which the system is used. Therefore, where the system is used continuously for the whole of the period of the year for which the car is held, the report will provide the odometer records for the holding period. 60. However, if the system is not continuously used for the whole of the period of the year for which the car is held, the reports will not provide both the start and end odometer readings for the holding period. For example, if the car is held for the full year but the EZY2C GPS Tracking System is only used for the first 12 weeks of the year, the reports will only provide the odometer reading as at the start of the holding period. The reports will not provide the odometer reading for the end of the year (the end of the holding period). Therefore, in such a situation, the odometer reading at the end of the period will need to be separately recorded for the reports to provide odometer records for the holding period. | Does the EZY2C GPS Tracking System report meet the relevant requirements of section 10B?: 61. Section 10B states: 62. Where the EZY2C GPS Tracking System is used continuously for the whole of the holding period, the FBT Logbook Report will meet all the necessary requirements of section 10B in a non-log book year of tax as: 63. An employer in a non-log book year of tax who does not use the EZY2C GPS Tracking System in that year of tax or does not use it for the whole of the period that the car is held but has used the system in one of the previous four FBT years continuously for an 'applicable log book period', will not by itself satisfy the requirements of section 10B. The employer will also need to: 64. The following is a detailed contents list for this Ruling: © 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

Ruling: 27. The Trip Report and the FBT Logbook Report (together referred to as the EZY2C GPS Tracking System report) satisfy the definition of 'log book records' in subsection 136(1) provided: 28. The EZY2C GPS Tracking System report satisfies the definition of 'odometer records' in subsection 136(1). 29. An employer in a log book year of tax who uses the EZY2C GPS Tracking System continuously for: satisfies the requirement in section 10A and is entitled to claim a reduction of operating costs. 30. An employer in a log book year of tax who uses the EZY2C GPS Tracking System continuously for: satisfies the requirements in section 10A and is entitled to claim a reduction of operating costs provided the employer: 31. An employer in a non-log book year of tax that uses the EZY2C GPS Tracking System continuously for the whole of the holding period (as defined in section 162C), satisfies the requirements in section 10B and is entitled to claim a reduction of operating costs. 32. An employer in a non-log book year of tax who has used the EZY2C GPS Tracking System in one of the previous four FBT years continuously for an 'applicable log book period' but: satisfies the requirements in section 10B and will be entitled to claim a reduction of operating costs of the car on account of business journeys undertaken in the car during the holding period provided the employer: Commissioner of Taxation 8 November 2017


Appendix: Does the EZY2C GPS Tracking System report meet the relevant requirements of section 10A?: 33. Section 10A states: 34. Section 162G(1) sets out various circumstances under which a particular year can be treated as a 'log book year of tax' as follows: 35. It is accepted that employers using the EZY2C GPS Tracking System will make an election under paragraph 162G(1)(b) to treat a current year of tax as a 'log book year of tax'. | Does the EZY2C GPS Tracking System report satisfy the requirements of the definition of 'log book records'?: 36. Subsection 136(1) defines 'log book records' as: 37. The definition of 'log book records' in subsection 136(1) requires that the relevant record be a 'daily log book or similar document' and also the relevant entries are 'made in the English language at, or as soon as reasonably practicable after, the end of the journey.' 38. The EZY2C telematics device collects all applicable information for each journey undertaken by a car (that is, the location of the start and end of a journey, date and time of the start and end of a journey, purpose of each journey, kilometres travelled as per the GPS co-ordinates), and automatically sends it to EZY2C's centralised server. 39. The business use or private use details for the journey are input by each respective driver either through the use of EZYVIEW (mobile/tablet platform) or through EZY2C's online portal. The employer can then use the EZY2C GPS Tracking System to produce, in English, a 'Trip Report' and an FBT Logbook Report for the selected period. 40. Paragraph (d) of the definition of 'log book records', requires the respective odometer readings of the car at the beginning and at the end of the journey be entered into the relevant records. 41. The term 'odometer' is not defined in either the FBTAA or the Income Tax Assessment Act 1997 but the Macquarie Dictionary, online edition, defines that term as being, 'an instrument for measuring distance passed over, as by a motor vehicle.' 42. The term 'odometer records', as defined in subsection 136(1) makes reference to 'odometer readings of the car'. Whilst odometer readings must pertain to the car, it does not necessarily mean that they must also be attributable either wholly or in part to the rotation of the car's wheels, thereby mechanically moving the standard odometer fitted in the car by the manufacturer. 43. Each time the car is driven, the start and end odometer readings for the journey are automatically calculated by the EZY2C GPS Tracking System from the GPS and other telemetry data recorded. 44. It is accepted that the opening and closing odometer readings for each car journey detailed in the FBT Logbook Report satisfies the requirements of paragraph (d) of the definition of 'log book records.' 45. The EZY2C GPS Tracking System Trip Report and FBT Logbook report both record the following: thus satisfying paragraphs (c), (e) and (f) of the definition of 'log book records' in subsection 136(1). 46. It is considered that the EZY2C GPS Tracking System report is 'a daily log book or similar document' that satisfies the requirement of being made in the English language at or a soon as reasonably practicable after the end of the journey. 47. The report generated by the EZY2C GPS Tracking System satisfies the definition of 'log book records' in subsection 136(1) provided the report is completed for an 'applicable log book period'. 48. The definition of 'log book records' in subsection 136(1) also requires that each business journey recorded in the log book records be in relation to a 'period'. Paragraph 10A(a) refers to 'log book records' being maintained for an 'applicable log book period'. 49. The term 'applicable log book period' is defined in subsection 162H(1) as follows: 50. It is accepted that all employers using the EZY2C GPS Tracking System in relation to any car fringe benefits they provide will maintain the necessary records for the duration of the 'applicable log book period'. 51. It is accepted that the EZY2C GPS Tracking System report satisfies all the relevant requirements of the definition of 'log book records' as defined in subsection 136(1). | Does the EZY2C GPS Tracking System report satisfy the requirements of the definition of 'odometer records'?: 52. The term 'odometer records' is defined in subsection 136(1) as: 53. The definition of 'odometer records' in subsection 136(1) requires that odometer readings be recorded both at the 'commencement' and at the 'end' of the periods. 54. The EZY2C GPS Tracking System FBT Logbook Report provides details of the odometer reading for the car at the start of the first recorded journey and also the odometer reading for the car at the end of the last recorded journey that were undertaken during each report period. 55. As stated in paragraph 50 of this Ruling, it is accepted that all employers using the EZY2C GPS Tracking System in relation to any car fringe benefits they provide will maintain the necessary records for the duration of the 'applicable log book period'. 56. As stated in paragraph 46 of this Ruling, the report provided by the EZY2C GPS Tracking System meets the necessary requirement of having entries 'made in the English language at, or as soon as reasonably practicable after, the end of the journey'. 57. It is considered that the EZY2C GPS Tracking System report satisfies all the relevant requirements of the definition of 'odometer records' as defined in subsection 136(1). 58. Paragraph 10A(b) requires odometer records to be maintained for the holding period as defined in section 162C. 59. The EZY2C GPS Tracking System will provide odometer records for the period of the year in which the system is used. Therefore, where the system is used continuously for the whole of the period of the year for which the car is held, the report will provide the odometer records for the holding period. 60. However, if the system is not continuously used for the whole of the period of the year for which the car is held, the reports will not provide both the start and end odometer readings for the holding period. For example, if the car is held for the full year but the EZY2C GPS Tracking System is only used for the first 12 weeks of the year, the reports will only provide the odometer reading as at the start of the holding period. The reports will not provide the odometer reading for the end of the year (the end of the holding period). Therefore, in such a situation, the odometer reading at the end of the period will need to be separately recorded for the reports to provide odometer records for the holding period. | Does the EZY2C GPS Tracking System report meet the relevant requirements of section 10B?: 61. Section 10B states: 62. Where the EZY2C GPS Tracking System is used continuously for the whole of the holding period, the FBT Logbook Report will meet all the necessary requirements of section 10B in a non-log book year of tax as: 63. An employer in a non-log book year of tax who does not use the EZY2C GPS Tracking System in that year of tax or does not use it for the whole of the period that the car is held but has used the system in one of the previous four FBT years continuously for an 'applicable log book period', will not by itself satisfy the requirements of section 10B. The employer will also need to:


Summary - what this ruling is about | NOT LEGALLY BINDING SECTION: | A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. | If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you. | NO REDUCTION OF OPERATING COST IN A LOG BOOK YEAR OF TAX UNLESS LOG BOOK RECORDS AND ODOMETER RECORDS ARE MAINTAINED | is made in the English language at, or as soon as reasonably practicable after, the end of the journey. | 162H APPLICABLE LOG BOOK PERIOD | are entered in the English language, at, or as soon as reasonably practicable after, the respective times to which those odometer readings relate. | NO REDUCTION OF OPERATING COST IN A NON-LOG BOOK YEAR OF TAX UNLESS LOG BOOK RECORDS AND ODOMETER RECORDS ARE MAINTAINED IN LOG BOOK YEAR OF TAX | Appendix 2 - Detailed contents list


Related rulings: TR 2006/10
Legislative references: FBTAA 1986 FBTAA 1986 10A FBTAA 1986 10A(a) FBTAA 1986 10A(b) FBTAA 1986 10A(c) FBTAA 1986 10A(d) FBTAA 1986 10A(e) FBTAA 1986 10B FBTAA 1986 136(1) FBTAA 1986 162C FBTAA 1986 162G FBTAA 1986 162G(1) FBTAA 1986 162G(1)(b) FBTAA 1986 162H FBTAA 1986 162H(1) FBTAA 1986 162K(2)(b) FBTAA 1986 162L(2)(b) ITAA 1997 TAA 1953
Other references: The Macquarie Dictionary, online edition