Are You Keeping a Valid Log Book?

by Peter Fleming

If you are claiming a deduction for your vehicles using the log book method you must have a compliant log book. Each logbook you keep is valid for five years but you may start a new book at any time. You will need to do a new log book if your business usage changes significantly.

Each logbook you keep must cover twelve continuous weeks and contain the following information:
1. When the logbook period begins and ends.
2. The car's odometer readings at the start and end of the logbook period.
3. The total number of kilometres the car travelled during the logbook period.
4. The number of kilometres travelled for work activities based on journeys recorded in the logbook. If you made two or more journeys in a row on the same day, you can record them as a single journey.
5. The business use percentage for the logbook period.

Part of the requirements of claiming a deduction using the log book method is you must keep a record of the vehicle's odometer reading at 30 June each year. If you are operating in a company or trust, you will also need to record the odometer reading at 31 March.

If you have any questions regarding what is required to maximise your motor vehicle tax deduction, please contact our office on 5482 2855.