✅ 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.

→ Related: Best Receipt Tracking Apps for Australian Tradies 2026 — Dext, Hubdoc and more compared.

⚠️ Deadline approaching: $20,000 Instant Asset Write-Off ends 30 June 2026 — buy eligible tools and equipment before then or lose the upfront deduction.

Free tool: Ute Loan Repayment Calculator — work out your monthly repayments and total interest for any loan amount.

→ Related: Best Receipt Tracking Apps for Australian Tradies 2026 — Dext, Hubdoc and more compared.

⚠️ Deadline approaching: $20,000 Instant Asset Write-Off ends 30 June 2026 — buy eligible tools and equipment before then or lose the upfront deduction.

Free tool: Ute Loan Repayment Calculator — work out your monthly repayments and total interest for any loan amount.

## Step-by-Step Logbook Setup for Australian Tradies The ATO expects your logbook to be contemporaneous — meaning you write it down as you drive, not weeks later from memory. This is the single most common mistake that gets logbooks rejected. Here's how to set it up properly from day one. **Week 1: The Preparation Phase** Before you start your 12-week logbook period, decide which week works best for your business cycle. Most tradies choose a full week that represents their typical work pattern. If you're in construction, avoid holiday weeks or shutdown periods. If you're a plumber, pick a week with mixed jobs — residential, commercial, emergency callouts. Get a small notebook and keep it in your vehicle. A5 size (half A4) fits perfectly in the cupholder or sun visor pocket. Some tradies use a dedicated logbook app, but the ATO doesn't require this — a handwritten notebook is perfectly acceptable and actually preferred by many, since it shows genuine contemporaneous recording. Your daily entry needs five things: 1. **Date and day of week** — This shows the logbook is being kept in real-time 2. **Opening odometer reading** — Start of the day 3. **Closing odometer reading** — End of the day 4. **Total km driven that day** — Calculate it yourself 5. **Business purpose** — What you actually did (e.g., "Site visits: Neutral Bay job, supplier run, back to workshop") That's genuinely all you need. You don't have to break down every individual trip. A single line per day is sufficient. **Week 2–12: The Recording Phase** Once you've started, consistency is everything. The ATO will look for patterns that suggest you're making entries up. Write it down the same time each day — morning before you start, or evening when you knock off. Don't wait until Friday to fill in Tuesday's entries. For tradies, the trickiest part is working out what counts as "business" kilometres. Here's the rule: kilometres driven to a job site or client location count. Kilometres driven from your home to your first job site count. But kilometres from home to your workshop, then workshop to the job, only count from the workshop onwards. **Example:** You live in Parramatta. Your workshop is in Penrith. You have a job in Windsor. - Parramatta to workshop = **private** (not claiming) - Workshop to Windsor job = **business** (claim it) - Windsor to next job in Penrith = **business** (claim it) - Penrith workshop back home = **private** (not claiming) Many tradies lose thousands by not understanding this distinction. If you're operating from a home office (common for sole traders), the rule changes slightly — your first trip to a client location counts as business from the moment you leave home.

TIP: Use your logbook alongside job tracking software like Tradify to cross-reference jobs with driving dates. This creates an audit trail that satisfies the ATO instantly — your invoices prove you were at a location on that date, and your logbook confirms the kilometres. This combination is nearly bulletproof in an audit.

## Using Your Logbook Data for Tax Year Deductions Once your 12 weeks are complete, the ATO lets you extrapolate the data across the full financial year. If your logbook shows 60% business use, you apply that percentage to your total annual kilometres and claim accordingly. **The calculation is simple:** 1. Calculate your total business kilometres from the logbook 2. Calculate your total kilometres driven in that 12-week period 3. Work out the business percentage 4. Apply that percentage to your full-year vehicle expenses (fuel, servicing, registration, insurance, tyres, repairs) **Example with real numbers:** - Total km in 12-week logbook: 3,200 km - Business km in 12-week logbook: 2,400 km - Business percentage: 75% - Annual fuel costs: $4,800 - Deductible fuel: $3,600 This method beats the cents-per-km approach (currently 88c/km for 2025–26) when your actual vehicle running costs are higher. For a $55,000 ute that's heavily used, the logbook method typically wins by $8,000–$12,000 annually. **Comparison: Logbook vs. Cents-Per-Km Method** | Factor | Logbook Method | Cents-Per-Km Method | |--------|---|---| | **Setup time** | 2 minutes/day × 84 days = ~3 hours | None | | **Annual deduction (75% use, 15,000 km)** | $9,000–$12,000* | $9,900 (fixed rate) | | **Best for** | High fuel/servicing costs, newer vehicles | Simple, one-off trips, salaried employees | | **Record keeping** | 5 years | 5 years | | **ATO audit risk** | Low (if done properly) | Very low | | **Flexibility** | Can claim actual costs + depreciation | Fixed cents per km only | *Varies based on actual fuel, servicing, and insurance costs The logbook method wins when your ute spends money beyond just fuel — regular servicing, tyres every 18 months, panel repairs, insurance on a newer vehicle. The cents-per-km method is simpler but locks you into a fixed rate regardless of what you actually spend. ## Common Logbook Mistakes That Get Rejected by the ATO **Mistake 1: Writing entries retrospectively** — The ATO can usually tell. Handwriting changes, pressure varies, ink colour shifts. If your logbook looks like it was written in one sitting, it's rejected. Write daily. **Mistake 2: Using round numbers** — "Exactly 250 km every day" raises flags. Real businesses have variation. Monday might be 320 km, Tuesday 215 km. If your logbook is suspiciously consistent, auditors notice. **Mistake 3: Forgetting non-business trips** — You need to record *all* driving, then note what's business and what's private. If your logbook only shows business trips, the ATO will assume you're hiding personal use. **Mistake 4: Not matching invoices to dates** — Your logbook says you were in Cronulla on March 14. But your invoices show no jobs in Cronulla that week. This inconsistency triggers audits. Cross-reference everything. **Mistake 5: Starting the logbook mid-tax year** — You can only claim the extrapolated percentage for the full financial year. If you start a logbook in November, you can't backdate claims to July. Plan ahead. --- ## FAQ

Can I use a logbook app instead of handwriting?

Yes. The ATO accepts digital logbooks from apps designed for this purpose. However, handwritten logbooks are often simpler and raise fewer audit flags because they show genuine contemporaneous recording. If you use an app, ensure it timestamps entries automatically and you can export a PDF for your records. The key is proving you wrote entries as you drove, not retroactively.

What if my 12-week logbook is rejected by the ATO?

If your logbook fails ATO scrutiny, you fall back to the cents-per-km method for that year (currently 88c/km). You can attempt another logbook in the following tax year. The ATO typically rejects logbooks for poor record-keeping, inconsistent entries, or obvious backdating. If this happens, focus on cleaner records next time or use software like Xero to automate tracking and create an undeniable audit trail.

Do I need to insure my logbook claims with BizCover?

Insurance doesn't cover tax deductions, but proper public liability and tools insurance does protect against claims related to work performed. What you *should* do is keep your logbook, supporting invoices, and receipts for at least 5 years. This combination is your actual "insurance" against audit. Store originals digitally (photograph them) and keep physical copies. This proves your deductions are legitimate and you'll never lose evidence.