Tools & Resources

Keeping a Travel Logbook for Tax 

If you use your car for work or business, keeping a good logbook makes tax time much easier. A logbook demonstrates which trips were work-related and which trips were private. 

The ATO may ask you to prove your claim, so you should keep clear records during the year rather than trying to remember everything later. 

You can only claim travel expenses that relate to your work or business. Private travel is not deductible. In most cases, normal travel from home to work is also private travel and cannot be claimed. 

A logbook helps show: 

  • when you travelled 
  • where you went 
  • how far you travelled 
  • why the trip was work or business related 
  • what percentage of your car use was for work or business. 

This percentage is used to work out what quantity of your car expenses may be deductible. 

If you want to claim car expenses using the logbook method, you need to keep a logbook for 12 continuous weeks, documenting all car journeys in that period. 

For example, if you use your car for client visits, site visits, business errands or travel between work locations, the logbook should show a typical pattern of that travel. 

A valid logbook can typically be used for up to 5 years, as long as your travel pattern has not changed significantly. You may need a new logbook if your job changes, your business travel changes, you start working from home more often, or if you change vehicles. 

You can keep a logbook in a paper book, spreadsheet, diary, accounting software or a logbook app. The format does not matter as much as the quality of the information. Many people forget to update a paper logbook. A logbook app can make the process easier, but you are still responsible for checking that the information is accurate. 

For individuals who regularly use their car for work or business, one app option is Driversnote, which can be used to track trips, classify them as business or private, and generate reports.  

At the start of the logbook period, record: 

  • the date the logbook starts 
  • the vehicle registration, its make and model 
  • the opening odometer reading 

For each work or business trip, record: 

  • the date and *reason for the trip 
  • where the trip started and ended 
  • the odometer reading at the start and at the end 
  • the total kilometres travelled 

*Try to write the reason clearly. Avoid vague descriptions such as “work” or “business”. Better descriptions could be “client meeting”, “collecting business supplies”, “travelling between worksites” etc. 

The below example is ideal as it shows where you went, how far you travelled and why the trip was work-related: 

“15 September – travelled from office to client premises at Parramatta and returned to office. Odometer 52,410 to 52,476. Total 66 km. Purpose: client bookkeeping review.” 

At the end of the 12-week period, record the closing odometer reading. You can now work out the total kilometres travelled during the logbook period. From this, you can work out your business usage. 

For example: 

Total kilometres travelled: 4,000 km
Business kilometres: 2,400 km 

Business-use percentage: 60% 

This means 60% of eligible car expenses may be claimable, provided you have the right records. 

Remember, a logbook shows the work or business-use percentage, but you also need to keep records of the actual car expenses, such as: 

  • fuel receipts 
  • servicing and repair invoices 
  • registration papers 
  • insurance documents 
  • loan or lease documents 
  • roadside assistance costs 
  • parking and toll receipts. 

Bank statements may help, but they are not always enough on their own. It is best to keep tax invoices and receipts where possible. You should also keep odometer readings for the start and end of each financial year, 1 July and 30 June.