Car Log Books

If you think you can rely on your log book alone for claiming the business usage of your car, think again!

The "log book method" seems to suggest that the business usage of a car is substantiated by simply maintaining a log book. However, if you are using the log book method for claiming an income tax deduction or reduction of FBT car benefits, having a log book is only one of many factors that you take into account in estimating the business usage percentage of your car.

Although keeping a log book is a precondition for using the log book method, other evidence such as pattern (or change in pattern) of car use and the number of cars used should also be considered when estimating the business usage percentage of a car. For example, if your business activities or employment duties have varied materially since you established your log book, your estimated business percentage should reflect your current pattern of usage of the car. The log book percentage should only be used as a guide.

Log books are to be renewed every five years unless you are specifically requested by the commissioner to keep a log book for the year or if you start to use one or more additional cars under the log book method during the year.