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 Other Vehicle eg van, ute you cannot claim option
• Depends on your business structure & type of vehicle

For further information see ATO link

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

The logbook entry must record the purpose of the journey in order to provide satisfactory evidence of its business nature. An entry merely indicating "business'' or "miscellaneous business'' will be insufficient for this purpose. As a general rule, an entry should be sufficiently descriptive of the purpose of the journey to characterise it as a business journey and to correlate broadly with the distance travelled. The fact that a particular journey is of a kind ordinarily associated with the employment duties of the employee is a relevant consideration in determining the extent of detail required.

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

You must retain your logbook and odometer records for 5 years after the end of the latest income year that you rely on them to support your claim.