Log Book

You have 2 options re- claiming car expenses

Option 1 - Cents per km method (max 5,000kms)

Option 2 - Logbook Method (work % x actual expenses)

Notes:

• You can swap between methods each year
• If you have an exempt Vehicle eg van, ute you cannot claim method 1 - you can only claim actual costs

Option 1 - Cents per km method

You can claim up to 5,000 work km based on a reasonable estimate

Option 2 - Logbook method

You can purchase a logbook from a newsagency, Officeworks OR you can use an app eg Driversnote

Your logbook must contain:

• when the logbook period begins and ends
• the car’s odometer readings at the start and end of the logbook period
• the total number of kilometres the car travelled during the logbook period
• the number of kilometres travelled for each journey. If you make two or more journeys in a row on the same day, you can record them as a single journey
• the odometer readings at the start and end of each subsequent income year your logbook is valid for
• the business-use percentage for the logbook period
• the make, model, engine capacity and registration number of the car.

For each journey, record the:

• reason for the journey (such as a description of the business reason or whether it was for private use)
• start and end date of the journey
• odometer readings at the start and end of the journey
• kilometres travelled

Logbook timeframe

If this is the first year you have used the logbook method, you must keep a logbook for at least 12 continuous weeks during the income year. That 12-week period needs to be representative of your travel throughout the year.

If you started to use your car for business-related purposes less than 12 weeks before the end of the income year, you can continue to keep a logbook into the next year so it covers the required 12 continuous weeks.

Each logbook you keep is valid for five years, but you may start a new logbook at any time.

If you establish your business-use percentage using a logbook from an earlier year, you must keep that logbook and maintain odometer readings in the following years.

If your circumstances change, such as a change in the type of work undertaken by your business, you may need a new logbook.

https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-motor-vehicle-expenses/Logbook-method/

Claiming Logbook in Year 1

Use the business % per your 12 week log book

 

Claiming Logbook in Years 2-5

You need to make a reasoable estimate of your business use % taking into account the following:
- log book (see year 1)
- opening & closing odemeter readings
- variations in the pattern of use
- other records

Note:
If your business use is more than 10% different to the log book % (year 1) you will need to do a new log book

The ATO is very strict so make sure you maintain good records