✅ Updated 2025–26

The vehicle logbook is the most valuable tax exercise most tradies will ever do — and it takes about 2 minutes a day for 12 weeks. For a tradie with a $55,000 ute, a proper logbook could mean an extra $8,000–$12,000 in deductions over the cents-per-km method. Here's exactly how to do it correctly.

📋 In This Article

  1. →Why the logbook method wins
  2. →ATO logbook rules
  3. →What to record
  4. →How to keep it
  5. →Calculating your deduction
  6. →How long is it valid?
  7. →FAQs

Why the Logbook Method Wins

MethodMax DeductionRecords RequiredBest For
Cents per km$4,250/year (5,000km × 85c)No logbook neededLow business mileage
LogbookUnlimited — % of actual costs12-week logbook + receiptsMost tradies with work vehicles

For a tradie driving a $55,000 ute with 80% business use, the logbook method could produce a deduction of $12,000–$15,000+ per year (depending on actual vehicle costs). The cents per km method caps at $4,250. The 12 weeks of record-keeping pays for itself many times over.

ATO Logbook Rules

  • Duration: Must be kept for at least 12 consecutive weeks
  • Coverage: Must record EVERY trip during those 12 weeks — not just work trips
  • Validity: Valid for 5 years from the date of the last entry, unless your work pattern changes significantly
  • Start date: Can begin at any time during the year — you don't need to start on July 1
  • Vehicle details: Must include make, model, year and odometer readings at start and end of the 12-week period

What to Record for Every Trip

For each journey during the 12-week period, you must record:

  • Date of the journey
  • Odometer reading at start and end
  • Total kilometres travelled
  • Destination — where did you go?
  • Purpose — why did you go there?
  • Business or private — mark each trip clearly

For business trips: be specific with the purpose. "Job site — 45 Smith St Penrith" is better than "work". Specific entries are harder for the ATO to question and make your accountant's job easier.

How to Keep Your Logbook

Option 1 — ATO myDeductions app (free): The ATO's own app has a built-in logbook feature with GPS tracking. Each trip is automatically recorded. Free and ATO-accepted.

Option 2 — Phone app (Driversnote, TripLog): Purpose-built logbook apps that use GPS to automatically track trips and categorise them. Driversnote starts from free for basic use.

Option 3 — Paper logbook: Available from newsagents and the ATO. Fill it in manually after each trip. Perfectly valid — just easy to forget entries at the end of a long day.

Calculating Your Deduction

Step 1: Total business km ÷ total km × 100 = business use %
Example: 4,200 business km ÷ 5,200 total km = 80.8%
Step 2: Add up all vehicle costs for the full year
Example: fuel $4,500 + rego $800 + insurance $1,800 + loan interest $3,200 + servicing $900 = $11,200
Step 3: Annual costs × business use % = your deduction
Example: $11,200 × 80.8% = $9,050 deduction

Note: depreciation (decline in value) of the vehicle can also be claimed — your accountant calculates this based on the vehicle's cost and your business-use percentage.

How Long Is the Logbook Valid?

An ATO vehicle logbook is valid for 5 years from the date of the last entry. You don't need to redo it every year. However, you should redo it if:

  • Your work pattern changes significantly (e.g. you move to a new area, change trade, start working from home more)
  • You get a new vehicle
  • Your business-use percentage drops significantly

Can I use last year's logbook?

Yes — as long as it's less than 5 years old and your work pattern hasn't significantly changed. Keep the original logbook and your accountant will reference it each year.

What if I use my vehicle privately sometimes?

That's fine — and normal. The logbook records both business and private use to establish the split. Even if only 60% of your driving is business-related, you still claim 60% of all vehicle costs — which is almost always better than the cents-per-km method.

Can I claim vehicle costs if I'm an employee?

If your employer doesn't reimburse your vehicle costs and you use your own car for work travel, yes — but the rules are different for employees. You can't claim the vehicle itself; you claim work-related travel costs. Tradies who are sole traders or in their own company have more flexibility.