Car Logbook Tips for Tax Purposes

Car & Travel Expenses

Car Logbook Tips for Tax Purposes

If you use your vehicle for work but are not claiming the kilometres you drive, you could be missing out on a higher tax refund in 2026. Many taxpayers unknowingly pay more tax than necessary simply because they are unsure how vehicle deductions work or how to claim them properly.

At Expert Tax Accountants, we help you maximise every eligible deduction, including car expenses. One of the most effective ways to claim vehicle costs is by keeping a car logbook. Below is a simple guide to help you understand the process.

Step 1: Maintain a 12-Week Logbook

You must record all trips — both business and personal — for 12 consecutive weeks. This period should reflect your normal driving habits throughout the year.

Step 2: Record Essential Details

For each trip, make sure you include:

• Date of the journey
• Odometer reading at the start and end
• Total kilometres travelled
• Purpose of the trip (business or personal)

Step 3: Calculate Your Business Use Percentage

Once the 12-week period is complete:

1. Divide your business kilometres by your total kilometres
2. Multiply the result by 100

This gives you your business-use percentage.

Example:
Total distance travelled: 4,000 km
Business travel: 2,200 km

2,200 ÷ 4,000 × 100 = 55% business use

How Long Is a Logbook Valid?

A logbook can be used for up to five years, provided your driving pattern does not change significantly. If your circumstances change — such as a new job or relocation — you should start a new logbook.

What Is a Car Logbook?

A car logbook is simply a record of your vehicle usage that helps calculate your tax deduction. It is not complicated — it just requires consistency. Once you build the habit, it becomes part of your routine.

Required Information in a Logbook

According to ATO guidelines, your logbook must include:

• Start and end dates of the 12-week period
• Odometer readings at the beginning and end
• Total kilometres travelled
• Kilometres per journey
• Business-use percentage
• Vehicle details (make, model, registration number, engine capacity)

For each trip, record:

• The reason for the journey (business or personal)
• Odometer readings at the start and end
• Total kilometres travelled

What Car Expenses Can You Claim?

In addition to claiming business kilometres, you may also claim:

• Insurance
• Registration
• Fuel and oil
• Servicing and maintenance
• Vehicle depreciation

Always keep receipts, as the ATO may request evidence.

Expenses You Cannot Claim

• The full purchase price of the vehicle (only depreciation is claimable)
• Traffic fines or parking penalties

Other Methods to Claim Car Expenses

Actual Cost Method

This method allows you to claim the business-use percentage of your actual vehicle expenses. You must keep detailed receipts and records.

Cents Per Kilometre Method

You can claim up to 5,000 business kilometres per car per year at 88 cents per kilometre (2024–2025 tax year). This rate includes all vehicle-related costs, so no additional expenses can be claimed.

Final Thoughts

Claiming your vehicle expenses correctly can significantly increase your tax refund. If you need assistance with your car logbook or any other tax matter, our experienced tax agents in Sydney are here to help you lodge your return with confidence and maximise your refund.