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ATO Motor Vehicle Logbook Requirements: Your Simple Guide to Stress-Free Car Tax Deductions

Updated: Oct 10

Written by: Chris Mulcahy


How to meet ATO motor vehicle logbook requirements and maximise deductions


If you use your car for work or business, keeping track of your travel is an important step in maximising your tax deductions. The Australian Taxation Office (ATO) allows you to claim expenses using the logbook method - but only if your records meet the official standards.


The good news? ATO motor vehicle logbook requirements are clear and straightforward once you know what to do, and getting it right can unlock valuable savings at tax time.


ATO Motor Vehicle Logbook Requirements
Businessman focused on the road while tracking trips for tax savings

Why keeping a logbook matters


Your logbook is the key to proving the business use of your car. By tracking your trips for a set period, you calculate the percentage of business use and apply that percentage across all eligible expenses. This includes fuel, servicing, insurance, registration and even depreciation. The effort is well worth it - one logbook can be valid for up to five years.


How long your logbook must run


The ATO requires your logbook to cover a continuous 12-week period that reflects your usual driving patterns. Once complete, the logbook can generally be relied upon for five years, unless your usage changes significantly.


What to record to meet ATO motor vehicle logbook requirements


For every trip, you’ll need to record:


  • The date of the journey

  • The odometer reading at the start and end of the journey

  • The number of kilometres travelled

  • The purpose of the trip (work meeting, client visit, delivery, etc.)


Remember, private trips must also be recorded, but they simply need to be labelled as private.


Odometer readings you must capture


In addition to recording start and finish odometer readings for each trip, you must also:


  • Record the odometer reading at the start and end of your 12-week period

  • Record the odometer reading at 30 June each financial year while the logbook is in use


Keeping receipts and records


Alongside your logbook, you must keep evidence of all car-related expenses. This includes servicing, registration, insurance and finance costs. Fuel and oil can be recorded using either receipts or estimates based on odometer records.


How to calculate your business use percentage


At the end of your 12-week logbook period, divide your business kilometres by your total kilometres. This figure becomes your business use percentage, which applies to all your car expenses.


Example:


  • Total kilometres: 10,000

  • Business kilometres: 6,000

  • Business use = 60%

You can then claim 60% of your car expenses as a deduction.


Making logbooks easier with modern tools


While paper logbooks are still accepted, many people now prefer ATO-compliant apps such as myDeductions or Driversnote. These tools automatically track your trips and prepare reports that meet ATO motor vehicle logbook requirements, making compliance easier and more accurate.


Turn compliance into confidence


Understanding and meeting ATO motor vehicle logbook requirements doesn’t have to be overwhelming. Think of it as a 12-week investment that pays off for years in smoother claims and maximised deductions.


At Future Accounting, we help business owners and individuals set up logbooks correctly, review their compliance, and ensure they’re making the most of every eligible deduction.


Book an appointment with our team today and let us guide you through a stress-free approach to car tax deductions.


Disclaimer   

This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.   

Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder  

Liability limited by a scheme approved under professional standards legislation. 


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