Logbooks have been around for quite a while and are used for a variety of purposes – depending on your particular circumstances.
Why have a logbook?
Logbooks are used to substantiate the business/work related use of your vehicle to be able to claim a tax deduction. From the logbook, a percentage is applied to all motor vehicle costs including: fuel, insurance, registrations, repairs/services, interest on Car Loans, depreciation of the car. So for example, if you use the vehicle for 50% business/work related use, then you can claim 50% of all the above costs.
How do I complete logbook?
You can purchase a logbook from Newsagents/Officeworks or complete your own. It must be kept for 12 weeks – and once completed you can use the results for 5 years (unless your circumstances change). The following details must be contained in the logbook:
– Details of the vehicle (make, model, engine capacity & registration)
– The start and end date of the logbook
– The odometer reading at the start and end of the logbook period
– The total kilometres travelled during the logbook period
– The total business kilometres travelled during the logbook period
– For each individual journey: State and finish time, kilometres travelled, purpose of the journey
Who Should Complete a Logbook?
– An Individual wanting to claim a motor vehicle deduction if they’ve travelled over 5,000km for work.
If you’re an individual claiming the Cents per Kilometre Method, you’re not required to keep a logbook. However, you are required to substantiate how you determined the kilometres travelled – so many people use logbooks to write down their work travel each year.
– A Company/Trust which has any motor vehicles, both used for business and personal.
With only 15 weeks until the end of the financial year, it’s time to start your 12 week log book!