Redo Your Car Logbook Now (No Need to Wait for 1 July)

If you use your car for work, your car expense claim can make a real difference to your tax outcome. But without the right documentation, deductions can be restricted, which can mean paying more tax than you need to.

A logbook is one of the clearest ways to substantiate your work-related car use. As a practical guide, if your total car expenses are likely to be more than $3,500, it may be worth maintaining a logbook to support a more accurate (and often better) claim.

Logbooks are valid for 5 years (but only if circumstances stay consistent)

In Australia, a logbook is generally valid for 5 years, provided your pattern of work-related travel remains broadly the same.

If your circumstances have changed, your existing logbook may no longer reflect your actual business-use percentage, even if it is still within that 5-year period. With the ATO placing increasing focus on proper substantiation and documentation, it is worth keeping your records current.

When should you redo your logbook?

It is often time to redo your logbook if you have had a:

• Change in work travel: different sites/locations, more or fewer client visits, or more working from home days
• Change in job or business activity: new role, new duties, or a shift in how your business operates
• Change in cars: you bought a new vehicle or you now use a different car for work

Start now: your 12-week period can straddle financial years

A common approach is to keep a logbook for a continuous 12-week period that reflects your normal work pattern. Importantly, those 12 weeks can straddle financial years, so you do not need to wait until 1 July to begin.

If you think a logbook could benefit you, start now so you have usable records ready sooner.

Tip: if you want to reduce the admin, apps like GoFar or DriverNote can help track trips and make record-keeping easier.

Next step

If any of the above applies to you, prepare your updated logbook and email it through to us so we can apply the revised business-use percentage and keep your documentation in good shape.