How to Complete a Motor Vehicle Logbook for Tax Time

If you use your car for work or business, keeping an accurate logbook can help you claim motor vehicle expenses at tax time. The ATO allows two methods for claiming car expenses: the cents per kilometre method and the logbook method. If you’re aiming to maximise your deductions, the logbook method could be the way to go—but it does require some effort.

Here’s what you need to know to get it right.

A logbook is a detailed record of your car usage over a 12-week period. This record helps you calculate the percentage of business use, which you then apply to your vehicle’s running costs (fuel, servicing, insurance, depreciation, etc.).

Start when your work-related use is typical. The 12 weeks don’t need to be in the same financial year, but they must represent your usual travel.

For each journey during the 12 weeks, note the following:

Date

Odometer reading at start and end

Total kilometres

Purpose of the trip (e.g. client meeting, site visit)

Personal trips should also be recorded to provide a full picture.

At the start and end of the 12-week period, write down your car’s odometer reading.

Hold onto receipts and invoices for all vehicle expenses. These support your claim alongside the logbook.

At the end of the 12 weeks, total the business kilometres and divide by the total kilometres. This percentage will be used to work out your claim for up to five years, provided your vehicle use doesn’t change significantly.

If you drove 3,000 km over 12 weeks and 2,100 km were for business, your business use is:

2,100 ÷ 3,000 = 70%

If your annual vehicle expenses are $10,000, you can claim:

$10,000 × 70% = $7,000 deduction

– Use a logbook app (like Driversnote or myDeductions) for easy tracking.

– Make sure your logbook is legible and kept for five years.

– If your business usage changes, you’ll need to do a new logbook.

At Advisory One, we help clients get their deductions right and stay on the good side of the ATO. If you’re not sure how to apply your logbook or whether you’re using the best method, get in touch with our team today.

 

Let us help you keep it simple—and compliant.