Using your car for work purposes? Here’s what you need to record depending on the method used, including your car log book, what you can claim and for how long.

What to record in your car log book

Remember: if you want to claim expenses on a car that you own (not the business you work for), you can only use the logbook method.

Your logbook for each car that you wish to claim must contain:

  • when the logbook period begins and ends
  • the car’s odometer readings at the start and end of the logbook period
  • the total number of kilometres the car travelled during the logbook period
  • the odometer readings at the start and end of each subsequent income year your logbook is valid for
  • the business-use percentage for the logbook period
  • the make, model, engine capacity and registration number of the car

For each journey, record the:

  • start date
  • end date
  • kilometres travelled. If you make two or more journeys in a row on the same day, you can record them as a single journey.
  • odometer readings at the start and end of the journey.
  • reason for the journey (such as a description of the business reason or whether it was for private use).

Other records you need to keep:

  • an electronic or pre-printed logbook (available from stationery suppliers)
  • evidence of your actual fuel and oil costs, or odometer readings from which you can estimate your fuel and oil use.
  • evidence of all your other car expenses.

Logbook timeframe

If this is the first year you have used the logbook method, you must keep a logbook for at least 12 continuous weeks during the income year. That 12-week period needs to be representative of your travel throughout the year.

If you started to use your car for business-related purposes less than 12 weeks before the end of the income year, you can continue to keep a logbook into the next year so it covers the required 12 continuous weeks.

Each logbook you keep is valid for five years, but you may start a new logbook at any time.

If you establish your business-use percentage using a logbook from an earlier year, you must keep that logbook and maintain odometer readings in the following years.

If your circumstances change, such as a change in the type of work undertaken by your business, you may need a new logbook.

How to work out what percentage we can claim

To work out the percentage you can claim with this method:

  1. Keep a logbook.
  2. Work out your business-use percentage by:
    •  dividing the distance travelled for business by the total distance travelled.
    •  then multiplying by 100. (This will give you your business-use percentage)

You can then use this percentage to claim for all car expenses.

Example: Traveling for work

At the end of the income year, Tim’s logbook shows he travelled a total of 11,000 kilometres. Of these, 6,600 were for business-related purposes.

To work out the percentage of car travel used for business-related purposes, Tim made the following calculation: 6,600 ÷ 11,000 × 100 = 60% of travel was for business-related purposes.

Tim’s total expenses, including depreciation, are $9,000 for the income year. To work out how much he could claim as a deduction, Tim completed the following calculation:

$9,000 × 60% = $5,400

What can I claim?

  • registration
  • insurance
  • servicing
  • repairs & maintenance
  • fuel & oil
  • depreciation (we’ll calculate this!)
  • interest
  • car wash
If you use toll roads, the tolls relating specifically to your work trips will also be deductible. This will need to be split up and provided.
* NOTE: If you have bought a new car throughout the financial year, we’ll need the dealer tax invoice as well as the finance contract (if applicable) if a car was sold/traded in, we’ll need to know the value of this also.

What about the actual cost method?

You’ll need to supply the following:

  • The distance in kilometres you’ve travelled for business and private purposes, including the same detail as from the logbook method above.
  • All receipts and invoice expenditures for maintaining your car, including fuel, repairs, servicing etc.
  • Loan or lease documents.
  • Registration documents.
  • How you calculated your claim.

What differentiates the logbook method from the actual costs method is that you need to record all of your driving through the year. In contrast, the logbook method only requires 12 weeks.

Tracking cents per kilometers method

All you need for this method, regardless if your employer is reimbursing your expenses or you’re claiming a tax deduction:

  • Total kilometers driven.
  • Percentage of kilometers travelled for business purposes.
  • Evidence that you own the car, because it factors in depreciation, registration, insurance, fuel and maintenance.
  • Prove that you drove the kilometres being claimed, such as through an automatic logbook application or diary records of work-related driving.

As usual, remember to hold onto your records for 5 years in case of audits.