How to Use the Logbook Method to Claim Car Expenses in Australia

If you use your car for work purposes, you might be eligible to claim car expenses on your tax return. But to claim correctly, and avoid issues with the ATO, you’ll need to keep proper records. One of the most popular ways to do this is the logbook method. At Rod Accounting & Financial Services in Geelong, we regularly assist clients in understanding how the logbook method works and how to make the most of it at tax time. In this article, we’ll explain what a logbook is, how to use it to claim car-related tax deductions, and what the ATO expects from you.

What Is a Logbook?

A logbook is a written or digital record of your car’s work-related usage. It shows the proportion of your car use that is related to income-generating activities and helps calculate how much of your car expenses you can legally claim on your tax return.

According to the ATO, the logbook must be kept for a continuous 12-week period, and be broadly representative of your travel throughout the year. Once completed properly, a logbook is valid for up to five income years. Learn more about keeping a valid logbook.

What Is the Logbook Method?

The logbook method is one of the two ATO-approved ways to calculate work-related car expense deductions in Australia. It’s a popular choice because it allows you to claim a percentage of actual car running costs, rather than a fixed rate per kilometre.

To use the logbook method, you must:

• Keep a logbook that records your work-related car trips for at least 12 continuous weeks
  
• Record odometer readings at the beginning and end of that period
  
• Keep receipts and records of all car expenses
  
• Use the percentage of work-related travel from your logbook to calculate your claim
  

For a detailed explanation, visit the ATO’s official guide on calculating deductions using a logbook.

Using the Logbook Method for More Than One Car

If you’re claiming car expenses for more than one vehicle, the good news is that you can:

• Use a different method for each car (e.g., logbook for one, cents-per-kilometre for another)
  
• Switch methods for the same car in different income years
  

However, if you’re using the logbook method for multiple cars, make sure you:

• Keep a separate logbook for each vehicle
  

Ensure the 12-week logbook periods are the same for all vehicles

What Should Be Included in the Logbook?

Your logbook must include all the details the ATO requires, including:

• The start and end date of the 12-week period
  
• Odometer readings at the beginning and end of the logbook period
  
• Each journey’s details, such as:
  
  • Date
    
  • Purpose (e.g., “Client meeting – South Geelong”)
    
  • Destination
    
  • Odometer readings at the start and end of each trip
    
  • Kilometres travelled
    

Your logbook needs to reflect typical travel habits. If your situation changes, for example, you move house or change jobs, and your travel pattern changes, you’ll need to complete a new 12-week logbook. Learn what else the ATO expects when you’re keeping a logbook.

Supporting Records You’ll Need

Using the logbook method isn’t just about the logbook itself. You’ll also need to keep supporting records for all car-related expenses, such as:

• Fuel receipts
  
• Repair and servicing invoices
  
• Registration and insurance payments
  
• Lease payments or depreciation schedules
  
• Loan interest documentation (if applicable)
  

The ATO has strict rules about documentation, so you must retain your logbook and car expense records for five years after the end of the last income year they’re used to support a claim. See the ATO’s full guide on keeping car expense records.

Can You Use a Digital Logbook?

Yes! The ATO accepts both paper logbooks and electronic logbooks. In fact, you can use the myDeductions tool in the ATO app to make the process easier. It allows you to track trips, record odometer readings, and store your travel information securely, without carrying a paper log everywhere.

Expert Help When You Need It

• Want to maximise your car expense deductions?
•  Unsure if your logbook is valid or accurate?
•  Managing multiple vehicles or switching jobs?

At Rod Accounting & Financial Services, we help individuals, sole traders, and businesses across Geelong and Australia-wide stay compliant and claim with confidence. We make tax time easier by offering clear advice, accurate calculations, and support in English or Persian.

Need help with your logbook or tax return?

Contact us today for a 15-minute free consultation, and let’s make your car expenses work for you.