It is important clients have up to date logbooks that are accurate to ensure they can make appropriate claims. Logbooks are valid for 5 years so please check whether a new logbook is required. If you have had a change in circumstances within the 5 year period, for example a change in the type of work undertaken, a new logbook may be necessary. Claiming motor vehicle expenses using the logbook method allows you to claim a percentage of all of your car expenses including fuel, registration, maintenance, interest on finance, and depreciation. If you do a lot of work related kms this method is likely to provide a greater tax deduction than claiming cents per km. Logbooks must be kept for a minimum of 12 consecutive weeks and must record for each trip:
- Reason for the journey (either ‘private’ or describe the work related purpose);
- Start and end date of the journey;
- Start and end odometer readings;
- Kms travelled.
Knowing when a trip is claimable can be tricky, and it is important you understand this when completing a logbook. If you are unsure whether a trip can be claimed please contact your accountant to discuss – this will ensure you have an accurate logbook that will stand up to ATO scrutiny.
You can use the myDeductions tool in the ATO app to keep track of your expenses and log your work or business related travel. Alternatively, you can pick up a motor vehicle logbook from our office. Please also be aware that all substantiation records for motor vehicle expenses will need to be kept for the full financial year.
Updated: 16th February 2022