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Log Book for Motor Vehicles

Taxpayers can claim motor vehicle expenses based on two methods, cents per kilometre or the log book method. The cents per kilometre method is limited to claiming a maximum of 5,000 work-related or business related kilometres travelled at the ATO allowed deduction claim of $0.66 per kilometre.

If a small business wants to maximize their motor vehicle deduction claims they need to keep a log book for each vehicle. For most businesses the log book method of claiming motor vehicle expenses will result in the biggest deduction.

With the logbook method:

  • You use the logbook records of your car’s business related usage to claim the business-use percentage of each motor vehicle expense.
  • The logbook must be kept to work out the business use percentage.
  • You must have written evidence (receipts) for the motor vehicle expenses including fuel, repairs, and insurance.
  • A logbook must be kept for a 12 week period and is valid for five years.
  • The logbook must record the motor vehicle’s odometer readings at the start and end of the logbook period.
  • The logbook can be recorded on paper or excel, can be a purchased log book from a stationery retailer, or an app on your smartphone.

Fleetcare have Australia’s first free and ATO compliant vehicle logbook app, Logit. This logbook app makes keeping a vehicle logbook on your smart phone using GPS easy. Further details can be found at Fleet Care.

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