What to Look for in a Logbook App

What Is an ATO-Compliant Car Logbook?

An ATO-compliant car logbook is a record of your vehicle use that allows you to claim deductions under the logbook method.

To meet Australian Taxation Office requirements, the logbook must cover a continuous 12-week period and include:

  • The date of each trip

  • Start and end odometer readings

  • Distance travelled

  • Purpose of the trip

The logbook establishes your business-use percentage, which can then be applied to vehicle expenses such as fuel, servicing, registration, insurance and repairs.

The logbook is generally valid for up to five years, provided your travel patterns don’t change significantly.

Many drivers now use digital logbook apps instead of paper records because they make it easier to maintain accurate records throughout the year.

Car Expense Claim Methods in Australia

The ATO allows two main methods for claiming work-related car expenses:

Cents per Kilometre Method

This is the simpler option.

You claim a fixed rate for each work-related kilometre driven, up to the annual limit set by the ATO. For the 2025-2026 financial year, the rate is 88 cents per kilometre.

You don’t need to keep records of every vehicle expense, but you should still be able to demonstrate how you calculated your business kilometres.

For people who only drive occasionally for work, this method can be straightforward.

Logbook Method

The logbook method allows you to claim the business-use percentage of your actual vehicle expenses.

To use this method, you must keep a 12-week logbook recording each trip during that period. The logbook determines the percentage of vehicle use that relates to business activities.

This percentage can then be applied to expenses such as:

  • Fuel

  • Servicing and maintenance

  • Repairs

  • Registration

  • Insurance

  • Loan interest or lease costs

For people who regularly drive for work, the logbook method often results in a larger deduction, but it also requires more consistent record keeping.

Why Many Drivers Are Moving Away From Paper Logbooks

Traditional logbooks require manual entry for every trip.

This means remembering to record odometer readings, distances travelled and trip purposes throughout the day. Receipts for fuel, servicing and other vehicle costs also need to be stored separately.

In reality, it’s easy for entries to be missed, especially for people who are frequently on the road. When records are incomplete, it can make deductions harder to support if they are ever reviewed.

What to Look for in a Logbook App

Not all vehicle logbook apps are the same. If you plan to rely on one for record keeping, it should help maintain the information required by the ATO.

Important features to consider:

Automatic Trip Tracking

Many apps use your phone’s GPS to automatically detect trips and record distances travelled.
This helps reduce missed entries and makes it easier to maintain accurate records.

Business vs Personal Trip Classification

When using the logbook method, it must be clear which trips relate to work.

A good app should allow trips to be classified as business or personal and include a short description of the trip purpose where necessary.

Vehicle Expense Tracking

If you claim vehicle deductions using the logbook method, kilometres alone are not enough.
You should also keep records of expenses such as:

  • Fuel
  • Servicing
  • Repairs
  • Registration
  • Insurance

Having these records stored in one place can make things much easier when preparing tax information.

ATO-Friendly Reports

At tax time, your accountant or bookkeeper should be able to quickly review a summary showing:

  • Business kilometres travelled
  • Total trips recorded
  • Business-use percentage
  • Vehicle expenses

Clear reports help reduce time spent gathering information later.

Digital Logbooks and Record Keeping

Digital logbook apps are designed to simplify ongoing record keeping by combining trip tracking and expense records.

For example, apps like CarSavvy, GOFAR and Driversnote allow users to automatically track trips using GPS, classify business and personal travel, and store vehicle expenses in one place. Another manual entry option includes the ATO app myDeductions to help record crucial information for free.
– If you’re looking more closely at how a digital option works in practice, we’ve put together a separate article that breaks down the features and day-to-day use of CarSavvy, including how it handles trip tracking, expense records and reporting for the logbook method.

Having this information recorded consistently throughout the year can significantly reduce the amount of work required when preparing tax information.

Who Should Use a Digital Vehicle Logbook

Digital vehicle logbooks are particularly useful for people who travel regularly for work, including:

  • Tradies travelling between job sites
  • Sales representatives visiting clients
  • Rideshare or delivery drivers
  • Small business owners claiming vehicle expenses
  • Support workers and mobile service providers

Anyone who relies on their vehicle for work can benefit from having trips and expenses recorded automatically.

What Records do you Need to Claim Car Expenses?

If you claim vehicle expenses using the logbook method, you should keep records of:

  • A compliant 12-week logbook
  • Fuel, servicing and repair expenses
  • Registration and insurance costs
  • Loan interest or lease payments (if applicable)

These records support the business-use percentage calculated from the logbook and help ensure deductions are properly documented.

Keeping these records organised throughout the year makes tax preparation significantly easier.

The Bottom Line

If you claim car expenses in Australia, maintaining accurate and consistent records is essential.

Paper logbooks can still be used, but many drivers now choose digital logbook apps to simplify the process and keep everything conveniently organised in one place.

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