Car Log Books

A Car Log Book is not enough!

This is because a Car Log Book alone used for claiming the business usage of your car doesn’t meet tax return requirements.

The “Car Log Book method” suggests that the business usage of a car is substantiated by simply maintaining a Log Book. However, using this method for claiming an income tax deduction or reduction of FBT car benefits, is only one of many factors. You must take into account more than just Log Book records in estimating the business usage percentage of your car.

Our tax advice here is to consider other evidence such as pattern (or change in pattern) of car use and the number of cars used when estimating the business usage percentage of a car. (This is in addition to keeping a Car Log Book when using the Car Log Book method). For example, if your business activities or employment duties have varied materially since you established your Log Book, your estimated business percentage should reflect your current pattern of usage of the car. The Car Log Book percentage should only be used as a guide.

How often should a Car Log Book be renewed?

Unless you are specifically requested by the commissioner to keep a Car Log Book for the year, you should renew it every five years. If you start to use one or more additional cars under this method during the year,  you should start a new Car Log Book then.

Call Central Coast Taxation Group for more details and advice, specific to your situation.