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Edited version of private ruling
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Ruling
Subject: Travel expenses-odometer
Can an electronic odometer application be used instead of your car's odometer to record the distance travelled by your car for the purpose of keeping a logbook?
Answer:
Yes.
This ruling applies for the following period
Year ended 30 June 2011
Year ended 30 June 2012
The scheme commenced on
1 July 2010
Relevant facts
You are a sole trader.
You own a car and the odometer does not operate.
The car's odometer can not be repaired.
You use the car to travel as part of your business activities.
You purchased an electronic device which has GPS and odometer applications.
You intend using the electronic device's odometer application instead of your car's odometer to record your travel.
The odometer application allows you to input the car's original odometer reading and then uses the global positioning system to determine the exact position of your car as you travel to your destination. The odometer application also records the date and time and distance travelled in a logbook form.
Stored travel data contained in the electronic device can be transferred to your computer at home into an electronic logbook.
Relevant legislative provisions
Income tax Assessment Act 1997 section 28-100
Income tax Assessment Act 1997 section 28-140
Reasons for decision
Logbook
Section 28-100 of the Income tax Assessment Act 1997 (ITAA 1997) requires that odometer records be kept as a condition of using the logbook method.
A logbook is a document in which an entry is recorded in respect of each business journey made during the applicable logbook period, and section 28-125 of the ITAA 1997 requires that each entry must state:
· the date the journey began and ended
· the odometer readings at the start and end of the journey
· the number of kilometres travelled, and
· the purpose of the journey.
'Odometer' is not defined in the ITAA 1997 but the Macquarie Dictionary defines it as 'an instrument for measuring distance passed over, by a motor vehicle'.
Section 28-140 of the ITAA 1997 states that you are required to keep your odometer readings in the form of a document that records the car's odometer readings at the start and end of the period.
In this regard, it is concluded that, whilst these readings must pertain to the car, it does not necessarily mean that they must also be attributable either wholly or in part to the rotation of the car's wheels, thereby mechanically moving the standard odometer fitted in the car by the manufacturer.
The Commissioner may accept other non-standard electronic odometer devices being used, subject to the integrity of such devices used.
In maintaining 'log book records' as defined, entries should be made 'as soon as reasonably practicable, after the end of the journey'. It is ATO policy to expect that normally such entries would be made in the log on the same day as the journey undertaken. However, in a situation where either it is not practical to generate a hard copy of the log on a daily basis from an electronic device's odometer application, the period for making such entries may be extended.
On this basis, the use of an electronic device's odometer application other than your car's odometer, whereby the log book is produced and entries completed on a weekly basis is accepted as meeting the requirements of section 28-100 of the ITAA 1997.