It's logbook check-in time
• FBT, Motor Vehicle, logbook,
Many taxpayers assume that once they've completed a logbook for their car, they're set for the next five years. However, this common misconception could mean you're claiming more, or less, than you're actually entitled to when it comes to work-related car expenses and your tax return.
When do you need a new logbook?
While logbooks can remain valid for five years, certain life changes require you to start fresh with a new one. Relying on an outdated logbook that no longer reflects your actual work-related travel patterns may result in incorrect claims.
You'll need to create a new logbook if you:
-
change jobs;
-
move to a new house or workplace; or
-
experience changes to your pattern of car use for work purposes, such as taking on a different role or routine that affects your work-related trips.
Using the logbook method for multiple cars
If you're claiming work-related car expenses for two or more vehicles, you must keep a separate logbook for each car. It's important to ensure these logbooks cover the same period to maintain consistency in your record-keeping.
Purchasing a new car
If you purchase a new car during the income year and want to continue relying on your previous car's logbook, you must make a written nomination before lodging your tax return. This nomination needs to state that you're replacing your original car with a new car and specify the date the nomination takes effect.
Company cars and novated leases
Remember, if your employer provides you with a car or you salary sacrifice a car using a novated lease, you can’t claim work-related car expenses using the logbook or cents per kilometre methods. This is because you don't own the car.
What records do you need to keep?
When claiming car expenses using the logbook method, you'll need to maintain several types of records, including:
-
odometer records for the start and end of the period you own the car during the income year you rely on your logbook;
-
proof of purchase price, or a new lease agreement and lease payment records;
-
decline in value calculations;
-
fuel and oil receipts, or records of a reasonable estimate of these expenses based on odometer readings;
-
receipts from commercial charging stations or evidence showing you incurred additional electricity costs to charge your electric or plug-in hybrid car at home, such as an electricity bill and the calculation of the direct cost to recharge;
-
evidence of payment for registration and insurance; and
-
evidence of payment for servicing, repairs and tyres.
Special considerations for electric and plug-in hybrid vehicles
If you use the home charging rate of 4.2 cents per kilometre (5.47 cents for 2026–2027) for a reasonable estimate of home charging based on odometer readings, you cannot claim any commercial charging costs. For plug-in hybrid vehicles, a specific formula must be used to calculate home charging expenses.
Need assistance?
Keeping accurate logbooks and records is essential for claiming the correct amount of work-related car expenses. If you've experienced any changes to your work situation, living arrangements or car usage patterns, now’s the time to review whether your current logbook still accurately reflects your circumstances. The ATO's cars, transport and travel webpage offers more information.