FAQ
Associate Lease - Employee FAQ
What is an associate lease?
An often-overlooked way to save on vehicle costs is an associate lease. This lets you lease a vehicle owned by an associate (e.g., a family member) to your employer, who provides it to you through your employment. Running costs are deducted from your pre-tax salary, reducing your tax, while your associate may also claim depreciation and running costs as a tax deduction.
Achieve Corporation manages all payroll deductions and ensures full compliance with Fringe Benefits Tax (FBT) requirements.
What are my responsibilities?
You’ll need to provide regular odometer readings, valid receipts, and documentation for all running costs to maintain eligibility under ATO guidelines. You must also notify Achieve Corporation of any changes to your circumstances within 10 business days.
You can calculate your car expense deductions using one of two methods: the Cents per Kilometre method or the Logbook method. Use a calculator to work out your deduction for either method.
Click [here] to learn more about ATO guidance.
What documentation must I provide?
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Fuel and charging receipts
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Service and repair invoices
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Registration and insurance
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Interest statements (if applicable)
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Odometer readings
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Logbooks (if applicable)
Cents per Kilometre Method
To use this method, multiply the number of work-related kilometres your car travels by the rate per kilometre for the relevant income year. Work-related kilometres are those travelled in the course of earning your assessable income.
You can claim a maximum of 5,000 work-related kilometres per car.
If the car has joint owners who use it for separate income purposes, each can claim up to 5,000 kilometres.
The rate covers all car expenses, including:
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Decline in value
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Registration
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Insurance
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Maintenance and repairs
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Fuel costs
You cannot add any additional expenses to the calculation. Receipts are not required, but you must be able to show ownership of the car and how you calculated your work-related kilometres. Examples of records include:
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A diary of work-related trips
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The myDeductions tool in the ATO app
Logbook Method
To use the logbook method, you need to:
Keep a logbook showing work-related trips for a continuous period of at least 12 weeks. The logbook is valid for up to 5 years.
Keep receipts or other records of your car expenses.
Use your logbook to calculate the deductible portion of your car expenses.
Keeping a logbook:
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Must cover at least 12 continuous weeks and be broadly representative of your travel.
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Must include the destination and purpose of each journey, odometer readings at the start and end of each journey, and total kilometres travelled.
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Must include odometer readings for the start and end of the logbook period.
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If your circumstances change (e.g., new job or move), you need a new 12-week logbook.
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For subsequent years, keep odometer readings and your work-related use percentage.
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If using the method for multiple cars, keep a logbook for each car covering the same period.
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Logbooks can be paper-based or electronic (using the myDeductions tool in the ATO app).
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Retain logbooks and odometer records for 5 years after the end of the latest income year you rely on them.
Records of car expenses:
You can claim running costs and decline in value. You must keep:
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Receipts for fuel and oil, or a reasonable estimate based on odometer readings
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Receipts for other car expenses, including registration, insurance, lease payments, services, tyres, repairs, electricity, and interest charges
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Record of the car’s purchase price and calculation for decline in value, including effective life and method
Electric cars – electricity expenses:
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Keep receipts for electricity from commercial charging stations or evidence of home charging costs (e.g., electricity bills and calculation method), along with odometer readings.
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Alternatively, you can use the EV home charging rate of 4.2c per kilometre for a reasonable estimate of home charging costs.
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If you also use commercial charging stations, you cannot claim these costs separately unless your car can accurately report the percentage of charge from home vs commercial sources.
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In that case, adjust total relevant kilometres by home charging percentage, multiply by the EV rate, and add commercial charging costs.
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Keep all records mentioned above if calculating charging costs this way.
How does provisional FBT work?
FBT is applied throughout the year using estimates based on statutory formula or ECM. This ensures ongoing compliance and avoids underpayment.
How do I get my FBT refund?
If your substantiated running costs exceed the provisional FBT estimation, Achieve Corporation will refund the difference through payroll after year-end verification
What happens if I don’t supply documents?
If documentation is incomplete or missing, your provisional FBT becomes final and no refund is applied.
Who do I contact for help?
Email payroll@achievecorp.au or speak with your payroll coordinator for guidance.
Otherwise, contact us through the form below
Associate Obligations – Compliance Summary
Commercial lease requirement
The associate must enter into a genuine commercial lease with the employee. The agreement must outline terms, lease payments, responsibilities, and duration. Payments must be at arm’s length.
Provision of documents
The associate must provide accurate and complete running cost evidence including tax
invoices, receipts, registration, insurance, servicing, repairs, and interest charges. Documents must be ATO-compliant tax invoices where applicable
Odometer and logbook requirements
The associate must supply odometer readings when requested. If the operating cost method is used, the associate must provide a valid logbook covering a continuous 12-week period and keep it current for five years unless material usage changes occur.
Receiving lease payments
Lease payments must be received directly from the employee as per the lease agreement and reflect commercial terms. The associate should issue receipts or statements acknowledging payments.
Record-keeping obligations
The associate must retain all documentation for at least five years in accordance with ATO record-keeping rules and provide documents promptly upon request.
Data accuracy and timeliness
All information supplied must be accurate, complete, and provided by requested deadlines to enable correct FBT reconciliation. Late or missing data may result in higher FBT outcomes for the employee.
Consequences of non-compliance
Missing or invalid documentation may result in higher FBT for the employee, rejection of the associate lease arrangement, or the arrangement being suspended until compliance is restored.
Associate Lease Policy
We have outlined our policy below, so please click below for more information
