Why the ATO cares about your logbook
The ATO allows you to claim work-related vehicle expenses as a tax deduction. But they need proof that the kilometres you claim were genuinely for work. A vehicle logbook is the gold standard — it records every trip with enough detail to satisfy an audit. Without one, you're limited to the cents-per-kilometre method, which caps at 5,000 km regardless of how much you actually drive.
What the ATO requires in a logbook
A compliant logbook must be kept for a continuous 12-week period and must record every trip — both business and personal — during that period.
- •Start date and time of each trip
- •End date and time of each trip
- •Odometer reading at start and end
- •Total kilometres for the trip
- •Purpose of the trip (business or personal)
- •Description of the business purpose (e.g. 'Travel to client site — Smith residence, Parramatta')
How long is a logbook valid?
Once you complete a valid 12-week logbook, you can use the business-use percentage it establishes for up to 5 years — as long as your circumstances don't change significantly. If you change jobs, get a new vehicle, or your work pattern changes substantially, you need to do a new 12-week period.
Common mistakes that trigger audits
The ATO data-matches vehicle claims against income and industry norms. These are the red flags.
- •Claiming 100% business use (almost nobody drives exclusively for work)
- •Round numbers for every trip (e.g. always exactly 25 km)
- •No logbook at all — just estimates
- •Logbook doesn't cover a full 12-week period
- •Missing odometer readings
- •Claiming the same percentage year after year without a current logbook
Paper logbook vs. app-based logbook
The ATO accepts both paper and digital logbooks — as long as they contain the required information. The practical advantage of an app-based logbook is accuracy. GPS records your exact start and end locations, calculates distance automatically, and timestamps every trip. No more estimating or forgetting to write it down at the end of the day. Apps like DayRoute record trips with one tap and let you mark each trip as business or personal.
What you can claim with a logbook
Once you have a valid logbook, you can claim the business-use percentage of your actual vehicle expenses: fuel, registration, insurance, servicing, tyres, depreciation, and interest on a car loan. For a tradie driving 40,000 km per year with 75% business use, this can be worth $8,000-$12,000 in deductions — significantly more than the cents-per-kilometre cap of 5,000 km.
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