Keep Accurate Vehicle Logbooks To Save On Tax

by David Schuh

Where motor vehicle expenses are being claimed, one method supporting a claim to the Tax Office is to complete a log book. The log book contains details of the business use over a period of at least 12 consecutive weeks. The 12 week period will represent the whole year's business travel.

Once you have completed a log book we can use the business percentage for 5 years at which time a new log book must be completed. If you are unsure if your log book is current or compliant you can send it into our office and we will review it for you to make sure it meets Taxation Office requirements.

If you have not kept a compliant log book in the past 5 years, please contact us and we will send you a new log book in the mail.

To be an effective log book that meets strict Taxation Office requirements, the log book must contain:

1. The date of the business trip commences and the opening odometer reading.
2. The date the business trip concludes and the closing odometer reading.
3. The number of business kilometres travelled in the business trip.
4. Purpose of journey (do not just say "work"). eg. client meeting, seminar attendance, property inspection.
5. Records must show the make, model and registration number of the car.
6. You must record the 30 June odometer reading every year. This does not have to be documented in the log book.

Complete the log book as above at least every five years, provide it to our office and pass the ATO inspections. Sometimes completing the log book is an inconvenience however, having an up to date log book could save you in tax if kept up to date.

If you have any questions regarding the vehicle log book please feel free to contact our office on 07 5482 2855 or info@schuhgroup.com.au