What You Need To Know
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What is a Motor Vehicle Logbook and why is it important?
Do you use your car for work-related tasks or for your business? If so, it's important to keep a thorough record of your car-related expenses to maximise your tax deductions. Maintaining an accurate and valid car logbook can save you time and money in the event of a tax audit. So, what exactly is a car logbook, how do you fill it out correctly, and how can it help you save money?
What is a logbook?
A car logbook is a comprehensive and accurate record that captures details of car usage over a specified period, often for tax deduction purposes. Typically maintained for a continuous 12-week period, the logbook should contain records of:
- Every trip taken
- The date of the trip
- The odometer readings at the start and end of the trip
- Odometer readings at the start and end of the trip
- The purpose of the trip
- Total kilometres travelled per trip
- Total kilometres in the record-keeping period
What car trips are considered valid for tax purposes?
The first thing to determine is which car trips qualify as work-related. You cannot deduct the cost of regular trips between your home and your main workplace, as these are considered personal trips and not work-related.
However, if you travel between multiple work sites during your workday, you can claim the trips between these locations as work-related. These trips are eligible as they are an essential part of your job.
Examples
How to claim work-related car use: ATO methods explained
Cents per kilometre method: simple and straightforward
Under the 'cents per kilometre' method, drivers can claim 72 cents for each work-related kilometre, up to 5,000 kilometres annually. No logbook is required for this method.
Logbook method: detailed and comprehensive
With this method, you determine the work-related percentage of your vehicle’s usage. Afterward, you can claim a variety of motor vehicle expenses with your ATO logbook.
These include:
- Your motor vehicle’s depreciation
- Running costs: fuel, oil, and maintenance
- Registration fees
- Insurance premiums
How to create a motor vehicle logbook:
There are several methods to create your logbook, such as using an Excel spreadsheet, a paper diary, or an app. All of these record-keeping methods are accepted by the ATO as long as your records are up-to-date, clear, and accurate.
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Should you have any queries in regards to the above please contact our office on (03) 9728 1448
The TAS Team
3/653 Mountain Highway, Bayswater VIC 3153
Matej Buckovsky (CPA)
Accountant and SMSF Specialist/Registered SMSF Auditor
Matej is a Certified Practising Accountant with over 10 years of combined taxation, auditing, and business advisory experience.
Specialisations
Medical
Consultancy (Financial Services, Civil Engineers)
Logistics
Trades
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