How To Claim The Car Logbook Method (Free Car Logbook Template)

The car logbook method is a good way to track your car expenses and claim them on your tax return (to increase your tax refund). But, you need to keep a car logbook.

If you use your car for work purposes, the ATO will let you make a claim on your tax return for some car-related expenses. (Special note: Don’t have a logbook? That’s ok we’ve got a free logbook template below you can use instead).  

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Is the logbook method right for you?

Generally speaking, if you use your car a lot for work, the vehicle log book method will get you a bigger tax refund than the cents per kilometre method.

Why? Because using a logbook to claim work-related car use allows you to include a percentage of all of your car expenses (fuel, registration, maintenance, interest on loans etc.).

The other method of claiming car expenses (cents per kilometre) allows you to claim a set rate for fuel only. This means you miss out on claiming for all other car related expenses. Note: If you already know how the log book method works and just need the logbook template, please scroll down the page.

How the logbook method works

When you use the logbook method, you record every trip in your vehicle (both private and business) for a 12-week period. Your logbook is then used to calculate the “business use percentage” of your car across the year.

Your business use percentage is the percentage of kilometres you travel in your car for work-related purposes. It’s also the percentage of all of your car expenses you paid during the year that you can claim on your return.

By keeping a car logbook, it’s easy to calculate your business use percentage and provide the evidence the ATO requires.

It’s important to record every trip you make in your car for 12 weeks – not just work trips. If you don’t do this, the ATO will consider your logbook as invalid and may reject all of your car expense claims.

How long is my car log book valid for?

Although it takes a bit of patience to get going, you only need to do a logbook once every 5 years. As long as your driving habits remains consistent each year, you can use that logbook for five years’ worth of tax returns.

This makes the car log book method really quite convenient to use. Even if you get a new car during that 5-year period, you can continue to use the old logbook as long as your work-related use hasn’t changed.

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Free Car Log Book Template

Download a car logbook for free

A car logbook helps you get the most from your work-related vehicle use. Download this free car logbook template so you can keep track of each business trip you take.

Does the logbook method sound like a lot of effort?

It’s EASY, if you think about this:

1. You only do it once every five years.
2. Each entry takes 30 seconds and when you get a bigger tax refund at tax time, you’ll be glad you took the time!

Etax Special Tip: Don’t start your logbook if you have holidays coming up in the next 12 weeks. You’ll end up recording less work-related kilometres than usual and your refund won’t be as big!

If you would like help to make sure you fill out your logbook correctly, don’t hesitate to get in touch with us via Live Chat or Secure messages from within your Etax account.

What sort of vehicle expenses can you claim?

One of the greatest benefits of choosing the logbook method over the more basic cents per km method, is that you can claim more than just the cost of the fuel you use.

So, what are “vehicle expenses” in the eyes of the ATO when using the logbook method?

Vehicle expenses include:

• running costs such as fuel, oil, and servicing
• registration
• insurance
• vehicle depreciation

Vehicle expenses DO NOT include:

• the purchase cost of the car
• parking tickets, speeding and other fines

Remember: record, record, record!

Of course, it’s not just your logbook records that you need to keep in order to maximise your car expenses claim in your tax return. You must also keep written evidence (such as receipts) of all the car expenses you are claiming. (Those items in the list above).

Always remember: Your car expenses claims cannot be guessed or made-up. They must be legitimate, and you must have evidence of them. If you stick to the rules and use the logbook method for claiming your car expenses, you can maximise your tax refund, without having to worry about the ATO becoming a back seat driver.

What other methods are there for calculating vehicle expenses?

Cents per kilometre method

The other way to claim car expenses is the cents per kilometre method where you an claim up to 5000 km per year. This method is ok for people who use their car sporadically during the year.

However, if you drive more than 5000 km during the year, you are costing yourself valuable tax refund dollars, if you don’t keep a log book.

Not sure which is the best method for you? Ask us and we’ll steer you in the right direction!

Read our blog: Can I Claim My Car Expenses Without a Logbook? to learn more about the cents per kilometre method of claiming car expenses.

Other posts on tax deductions:

• Can you claim your work uniform as a tax deduction?
• Claiming Self Education Expenses as Tax Deductions
• Ironing out laundry expenses
• Assessing your expenses claims when travelling for work