Log Book Method
In recent weeks we have discussed whether you can claim your car and ways in which you can claim your business related travel like cents per kilometre.
Another method the ATO allows is the log book method. This method is good if you estimate you will travel more than 5000 work related kilometres.
To be able to use the log book method you will need to do as the name suggests and keep a log book. The steps in keeping a log book to substantiate your claim are as follows:
You will need to:
* Show when the log book period begins and ends.
* Show the cars odometer readings at the start and end of the period.
* The total number of of kilometres travelled in the log book period.
* The number of kilometres travelled for work activities based on journeys recorded in the period in the log book.
* the business-use percentage for the log book period.
You will need to record all trips for a least 12 continuous weeks. Once you have done this your log book percentage is valid for 5 years.
You will also need to keep all receipts for registration, insurance, lease payments, services, repairs, interest charges and any other car expenses you may incur. This will also include fuel receipts. If you do not have all your fuel receipts you can make a reasonable estimate based on the odometer readings.
In the 2015 Federal budget the other forms of business related travel methods of one third of actual expenses and 12% of the original value have been abolished and will not be able to be used.