Taxpayers can keep the same logbook for their car for 5 years, but there are circumstances where they may need a new one during that period. Relying on a logbook that no longer represents a clients' work-related travel may result in them claiming more, or less than they're entitled to.
A new logbook may be required when your client:
- changes jobs – check for more than one payment summary
- moves to a new house or workplace – updating their address, or their work address has changed
- have changes to their pattern of use of the car for work purposes – check if they're still doing the same role and routine that requires the work-related trips.
Taxpayers using the logbook method for 2 or more cars need to keep a logbook for each car and make sure they cover the same period.
Clients who purchase a new car during the income year and want to continue relying on their previous car's logbook must make a nomination in writing. The nomination must be made before they lodge their tax return and state:
- they're replacing their original car with a new car
- the date that nomination takes effect.
Remember, if your client's employer provides them with a car or they salary sacrifice a car using a novated lease, they aren't entitled to claim work-related car expenses using the logbook or cents per kilometre method. This is because they don't own the car.
Keeping the right records
When claiming car expenses using the logbook method, taxpayers need keep the following types of records:
- odometer records for the start and end of the period they own the car during the income year they rely on their logbook
- proof of purchase price, or a new lease agreement and lease payment records
- decline in value calculations
- fuel and oil receipts, or records of a reasonable estimate of these expenses, based on odometer readings
- receipts from commercial charging stations or evidence showing they incurred additional electricity costs to charge their electric and plug-in hybrid car at home, such as an electricity bill and the calculation of the direct cost to recharge
- they can't claim any commercial charging costs if they use the home charging rateThis link opens in a new window of 4.2 cents per kilometre for a reasonable estimate of home charging, based on odometer readings. If the car is a plug-in hybrid, a specific formula must be used to calculate home charging expenses
- registration and insurance – receipts and invoices
- servicing, repairs and tyres – receipts and invoices.
More information about Cars, transport and travel is available on our website.