Edited version of private advice

Authorisation Number: 1052157689286

Date of advice: 23 August 2023

Ruling

Subject: Work related expenses - motor vehicle deductions

Question

Can I use my logbook from my vehicle that was destroyed to determine the work-related use of my new car for the purposes of calculating my allowable deduction for motor vehicle expenses under section 8-1 of the Income Tax Assessment 1997?

Answer

Yes, a logbook is valid for up to five years, if you get a new car during the five years, you can nominate the new car to replace the original car. As your previous car was destroyed during that five-year period that your logbook is valid for, you can use the logbook to determine the work-related use of your new car. At the end of the five-year period, you will need to start a new logbook.

If your circumstances change, such as a change in the type of work undertaken by your business, you may need a new logbook.

This ruling applies for the following period:

30 June XXXX

The scheme commenced on:

01 July XXXX

Relevant facts and circumstances

You are a disability support worker.

You use your vehicle for work purposes to support clients.

Your vehicle is used for work and personal use.

You completed a logbook as required for 3 months.

Your vehicle was involved in a traffic accident during the five-year period that your logbook is valid for and your insurance company classed the damage as not at fault total loss.

You now have a new vehicle which you use for work and private purposes.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

TR 2020/1