Record-keeping can make or break your ATO compliance during tax time. Regardless of your business type or its size, there are several benefits and expenses you can claim. However, you can end up in hot water if these claims can’t be justified in writing.
Getting this right keeps the ATO satisfied and also makes it easier to access business finance when you need it, whether that’s a vehicle upgrade, equipment purchase or working capital facility. Here are a few unique ways good record-keeping can benefit your business.
Sole Trader Income & Expense Claims
Good record-keeping starts with the basics: a dated receipt or invoice for every claim, a note of what it was for, and, if it’s shared between business and personal use, a reasonable basis for the split. Without that, even a legitimate claim can be hard to defend, which is exactly the gap the ATO has flagged in sole traders this year.
| Action | Benefit of Good Records |
| Reporting all income | Proof that cash jobs, bartered work and side income are captured, not just your main trading income |
| Splitting business and personal use | A clear basis for the business portion of a shared expense, such as a vehicle or home office, rather than a guess |
| GST registration | A running check of your turnover against the threshold, or an early flag if you’re in the taxi or ride-sourcing industry |
| The ATO app’s myDeductions tool | Income and expenses captured as they happen, instead of reconstructed at tax time |
Proof of FBT for Company Vehicles
If your business gives an employee access to a work vehicle, the record that decides your fringe benefits tax (FBT) position is a logbook and odometer readings that show how the vehicle was actually used, rather than an assumption that it wasn’t used privately.
This is important because FBT generally applies whenever a vehicle is made available for private use, even if that use is minimal. Private use covers more than most business owners expect:
- School pick-ups
- Grocery runs
- A weekend camping trip
- Simply parking the vehicle at home overnight
There are exemptions depending on the type of vehicle and how it’s used, but claiming one depends entirely on having that evidence ready. If FBT does apply, you’ll need to work out the taxable value, lodge and pay your FBT return on time, and report the fringe benefit on the relevant employee’s income statement.
Readiness for Changing EV FBT Rules
For electric vehicles, the record-keeping requirements are the same as for any other work vehicle: a logbook and odometer readings. However, the one addition is documentation of when the arrangement started, since that date now decides which row of the table below applies to your fleet under the electric car FBT exemption.
| Timing | FBT Treatment |
| Arrangement starts before 1 April 2029, EV priced $75,000 or under | Full FBT exemption for the life of the arrangement |
| From April 2027, EV priced over $75,000 | 25% FBT discount rather than a full exemption |
| From April 2029, all eligible EVs | 25% FBT discount applies across the board |
Protection of Access to ATO Information
Here, the record worth keeping is a simple note of when you last reviewed who can access your business’s ATO information and what you changed. Staff leave, roles change, and access permissions don’t always keep up, which is why the ATO has warned that outdated authorisations increase the risk of fraud.
| Check | What it Confirms |
| Relationship Authorisation Manager (RAM) | Who can act on behalf of your business |
| Access Manager | What those people are actually allowed to do once they have access |
| Australian Business Register (ABR) | Should be updated within 28 days of any change to your business details |
Access and authority are different things, and both need to be current. Beyond the fraud risk, outdated authorisations can stall tax processing and create operational disruption at exactly the times your business can least afford it.
Correct Fuel Tax Credit Claims
Fuel tax credits are calculated based on when the fuel was purchased, not when it was used, so the record that decides your claim is proof of purchase date rather than a note of when the fuel was actually used. Rates also changed between 1 April and 30 June 2026, and the impact depends on how your business uses fuel:
| Fuel Use | Current Impact |
| Off public roads | Generally a lower credit, currently 20.6 cents per litre |
| Heavy vehicles on public roads | May receive a slightly higher entitlement |
Getting this right comes down to accurate fuel tax credit claims that separate purchase records from usage records and apply the correct rate for each BAS period.
Easier Access to Finance
Businesses that keep evidence as they go, rather than reconstructing it under pressure, tend to find tax time much less of a scramble and ATO reviews less stressful.
The same records also do double duty when you need finance, since lenders want to see a clear, current financial picture. While your accountant or registered tax professional is the right person to advise on FBT, GST, deductions and ATO obligations, Peel Finance Brokers can help with the finance side of the equation. Our business loans can ease cash flow pressure around a BAS or FBT bill, help fund a vehicle upgrade including an EV, or cover equipment and working capital needs, structured in a way that suits your cash flow and tax position.
Contact Peel Finance Brokers to talk through your business’s cash flow and finance needs alongside your compliance obligations.
Frequently Asked Questions
Do I need to report cash jobs and side income as a sole trader?
Yes. The ATO requires you to report all income, including cash jobs, side hustles and payments in kind, not just income from your main business activity.
Does FBT apply if an employee only uses a work vehicle occasionally for private purposes?
Generally, yes. FBT can apply even where private use is minimal, such as an overnight stay at home or an occasional grocery run. Some exemptions exist depending on the vehicle type and use, so it’s worth checking your specific situation with your accountant.
Will my business lose the FBT exemption on our electric vehicle?
Not necessarily. Eligible electric cars priced at $75,000 or less that are provided under an arrangement starting before 1 April 2029 keep the full FBT exemption for the life of that arrangement. The 25% discount model applies to new arrangements for EVs over $75,000 from April 2027, and to all eligible EVs from April 2029.
How often should I review who has access to my business’s ATO information?
The ATO recommends reviewing your Relationship Authorisation Manager and Access Manager settings regularly, and updating the Australian Business Register within 28 days of any change, such as a staff member leaving or a change in role.
Where can I find out more about fuel tax credit rates?
Rates can change during the year and depend on how and where the fuel is used. Speak to your accountant to confirm the correct rate for your business, or see our guide to maximising fuel tax credits for the full breakdown.
This information is general in nature and doesn’t take into account your personal or business financial situation or needs. It isn’t intended as financial, tax or legal advice, and you should speak to a qualified accountant or registered tax professional about your specific ATO obligations before acting on it. Peel Finance Brokers can assist with finance options but cannot advise on tax or FBT matters.
Dip. of Management (Deacon University)
Dip. of Finance/Mortgage Broking Mgt.
Assoc. Cert. of Business (Real Estate)
Assoc. of Mort. Ind. Assoc. of Aust. (AMIAA)
Terry Boag is the founder and CEO of Peel Finance Brokers and has been providing professional and loyal service to the Mandurah and southwest area for 25 years. With a long history of financial experience, Terry is reliable and dedicated to his clients, always ensuring the highest customer service and delivering strong lender relationships.