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Motor Vehicle Deductions
- Vehicle Log Book -
What to Record
A log book can be used to record all business trips and then an actual
business use percentage calculated for each period.
Alternatively the log book can be kept for a three-month period every
three years. If the use of the vehicle or the nature of the business changes
over that three-year period, then another trial period of three months
must be done.
The log book needs to record the following:
The type of vehicle
The date and purpose of each business trip
The start and finish reading from the vehicle’s odometer
From these records a percentage of business running can be determined. This percentage is
then applied to the total running costs and depreciation of that vehicle to determine the
amount of business related expenses that can be claimed for GST and income tax purposes.
At the end of the three year period a new log book must be kept.
An example of a vehicle log book is shown below.
If no Log Book is kept
If no vehicle log book is kept, and the vehicle has an element of private use
(perhaps going from home to work), then the maximum amount able to be claimed
for income tax purposes is 25%.
The GST legislation does not have this same allowance. Technically, if a car has an element
of private use and no log book is kept, no deduction for any GST on that vehicle’s expenses
can be claimed.