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What is GPS Tracking?

A plain-English guide to how GPS vehicle tracking works, what it does, and how Australian businesses use it.

How GPS tracking works

GPS tracking uses a network of satellites orbiting Earth to determine the precise location of a device. A small GPS tracker installed in a vehicle receives signals from multiple satellites simultaneously, using the time difference between signals to calculate its exact latitude, longitude and speed.

Once the tracker has a position fix, it transmits that data over a cellular network to a cloud-based platform. Fleet managers can then view the location and movement of every vehicle in real time through a web dashboard or mobile app.

What data does it collect?

Modern GPS tracking devices capture far more than just a dot on a map. Depending on the device and its configuration, you can expect to receive:

  • Real-time location (latitude and longitude)
  • Speed and heading
  • Route history and trip replays
  • Stop durations and idle times
  • Ignition on/off events
  • Engine diagnostics and fault codes

How businesses use GPS tracking

Australian businesses use GPS tracking for fleet management, driver safety, regulatory compliance and proof of delivery. It helps reduce fuel costs by identifying inefficient routes, improves customer service by providing accurate ETAs, and protects assets by alerting managers to unauthorised vehicle use or theft.

Types of GPS tracking devices

There are several types of GPS tracking devices suited to different use cases. Hardwired trackers are permanently installed in a vehicle's electrical system and provide continuous, reliable tracking. OBD-II plug-in trackers connect to a vehicle's diagnostic port for quick, tool-free installation. Battery-powered asset trackers are portable and ideal for tracking trailers, containers, equipment and other unpowered assets.

Legal requirements in Australia

In Australia, employers generally have the right to install GPS tracking in company-owned vehicles, but they must inform employees that tracking is in use. Consent requirements vary by state and territory. It is important to understand your obligations under workplace surveillance legislation before deploying tracking devices. For more detail on the legal framework, see our guide to GPS legislation in Australia.

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