Where motor vehicle expenses are being claimed, one method of substantiating is to maintain a log book. A log book is a record of your business use of a vehicle over a period of at least 12 continuous weeks, which should be indicative of the whole year of your business travel.
You must maintain a log book: * in the first year you claim a deduction for your vehicle using this method; and * in every fifth year after the last log book was maintained.
It must be kept for a period of two years after the latest income year for which you relied on it to support your calculation of the business use percentage of your vehicle or until a dispute with the Australian Taxation Office is resolved (if it is greater than the five year period).
Other methods of substantiating motor vehicle deductions can be used if you do not wish to maintain a log book. (Please contact our office on 02-4455 5333 to discuss or email Juanita Sharp).
Download tips on completing your motor vehicle log book here.