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25 January 2018

Focus on Motor Vehicle Claims

Focus on Motor Vehicle Claims 

Due to a crackdown by the ATO on motor vehicle claims, we are encouraging all clients who claim motor vehicle use in their tax returns to make sure they have an up-to-date logbook.

Logbooks only need to cover a 13 week period and are then valid for the next 5 years, unless your work circumstances or car use changes signifcantly.

We generally find that using the logbook method allows for a greater deduction on your motor vehicle expenses, compared to using the cents per kilometre method. Since 1 July 2015 these are the only two methods available for motor vehicle claims in tax returns.

Under the logbook method you can claim the business-use percentage of all running costs of the car, including fuel, insurance, registration and repairs, as well as depreciation on the value of the car and interest on any finance or loan repayments.

Logbooks need to detail:

  • the opening odometer reading for the start of the 13 week period
  • the date, kilometres travelled and the starting point and destination for each business-related trip
  • the purpose of each business-related trip, such as client meeting, site visit, etc
  • the closing odometer reading for the end of the 13 week period

You can download a free logbook template from our website here, or you can download an app such as the myDeductions app available from the ATO.   

For more details on motor vehicle deductions and how to record your expenses, please refer to our article here.  


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