7 Daily Hacks to Better Tax Refunds – Day 3 (Use a Logbook)

By Stephen Burns, CEO Mr Tax Refund.

Do you use your car for work-related purposes?

If you use your car for any work purposes e.g. driving between jobs or locations, you may be able to claim the appropriate expenses as a deduction.

Most people use the cents-per-km method which does not require a logbook. Under this method this tax year you can claim a maximum of 5000km at 66c per km.

You do not need written evidence to show how many kilometres you have travelled, but the tax office may ask you to show how you worked out the kilometres claimed.

If you travel over 5000 km for work purposes (an average of about 96 km a week) then the car logbook method will likely give you a better refund – especially if you have a medium to large vehicle.

  • You need to keep a logbook for 12 weeks in a row.
  • The 12-week logbook covers you for 5 years of claims.
  • It must include all work-related trips and personal trips.
  • Your claim is based on your proportion of business use. That’s the percentage of kilometres you travel in your car for business.

The ATO have created a MyDeductions App that you can download and use throughout the financial year. This means you can log your work-related car trips electronically from your phone! There are also lots of third party Logbook Apps where you can log your travel on your phone using GPS data, and then email that report to yourself or straight to your accountant.

You may prefer to manually write down your work-related trips so we’ve made it easier for you by providing a FREE downloadable log book here. Just print out as many pages as you need.

Want more tips? Check out out our whole Ebook here.