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If you don’t have a valid logbook – there’s still time! (The guide for claiming car expenses)

Do you claim a deduction for business or work-related car expenses when you do your tax return? You don’t have a logbook and you are unsure whether you need one?

There have been changes to how you calculate your motor vehicle deduction.

From 1 July 2015, you can no longer use the one-third of actual expenses and the 12{8c9c1ff2dd97e2d6259091c549649f3540ea2a8d186629f84b534d36b0353f14} of original value methods. For the 2016 financial year (and future years) there will only be two ways to calculate your claim.

Cents per kilometre method

You now use a single rate of 66 cents per kilometre for all motor vehicles (regardless of the size of the engine). If you have used this method in the past, your deduction will decrease as the rates have been more generous in the past.

You can claim a maximum of 5,000 business kilometres per car using this method (even if you travel more).

Logbook method

To use this method, you need to keep a logbook for a minimum continuous period of 12 weeks. Unless your business use changes substantially, you can use the same logbook for a period of 5 years.

You will need odometer readings for the logbook period and you can claim fuel and oil costs based on these records, or actual receipts. You will need written evidence for all other expenses.

If you think it is too much hassle to keep a logbook, have a look at this simple gadget that we have tested for you – GPS Logbook

It plugs into your car’s cigarette lighter and with few simple settings you will be able to extract your logbook in CSV format which is ATO approved.

For more details on which trips you can and cannot claim head to the ATO website or get in touch with us.

Xperion GPS logbook