The Australian Taxation Office (ATO) is focussing heavily on this type of claim and are increasing audits to ensure each claim has a valid logbook.

The ‘logbook’ method requires you to calculate your actual business use percentage of your car through the use of a valid logbook. You can then claim this percentage of the cars expenses at tax time.

By law, if you are claiming the logbook method you are required to provide us with a copy of your logbook when preparation of your income tax return occurs. It is imperative that your logbook is up to date and completed prior to your tax appointment with us.

ATO logbook requirements:

They must cover at least 12 continuous weeks. If you started using your car for work-related purposes less than 12 weeks before the end of the year, you can extend the 12-week period into following financial year. (If you are using the logbook method for two or more cars, the logbook for each car must cover the same period).

–        If you established your business use percentage using a logbook from an earlier year, you need to keep that logbook and maintain odometer records.

–        You can only prepare a logbook for a vehicle that is owned and registered in your name.

ADDITIONAL NOTE: Logbooks are valid for five years.

Logbooks must record:

Entries in the logbook for each business trip must be made at the end of the journey (or as soon as possible afterwards) and show the:

• Date the journey began and ended;
• Odometer readings at the start and end of the journey;
• Kilometers travelled on the journey;
• Reason for the journey.

Your records must also show the make, model, engine capacity and registration number of the car.

If you require a new logbook we have ample available at our Cranbourne and Mornington office receptions FREE for client collection. Alternatively, you can get one from your local newsagency or post office.