MOTOR VEHICLE

LOG BOOK

Cnr Duporth Avenue & Wharf Street (PO Box 299)

Maroochydore Qld 4558
Telephone: (07) 5443 2600
Email: reception@loveandpartners.com
Website: www.loveandpartners.com.au
Where motor vehicle claims are to be based on a log book, details of HOLDING A CAR
business trips are required to be recorded over a typical twelve week You must be the legal owner. Before you are eligible to claim under one of
period. If the overall use of the vehicle significantly alters (by at least 10%) the four methods for claiming car expenses, you must beneficially ‘hold’ the
a further twelve week record should be maintained to establish the rate of car. Generally you hold the car if you either own (i.e. normally registered in
business use of the vehicle. your name) or lease/hire purchase the car.

1. A new log book is required to be completed at least every 5 years. CANNOT CLAIM CAR EXPENSES FOR SOMEONE ELSE’S CAR
However if either annualised kilometres (being total logbook km’s for 12 You cannot claim for car expenses under any method available, where the
weeks annualised to a full year) or business use %, do not remain constant car was owned or leased by someone else, including another member of
then a new log book is required each year. your family in most instances.

Motor vehicle expenses allowable as tax deductions will be calculated as

follows:-

Business Travel Recorded in the log book X Total car running expenses
Total Motor Vehicle travel for the period for the year

(Total car running expenses include depreciation and interest if applicable)

2. Written evidence of all car expenses, except fuel and oil, are to be kept.
Odometer readings for every year are to be recorded.

All information provided for in this log book is required by the Tax
Commissioner. Entries should be made at the end of the journey or as
soon as possible after the journey and they must be in English.

There are alternative methods of establishing motor vehicle expense

claims other than through the use of a log book. You should discuss these
alternative methods with your Accountant.

See further information at the end of this booklet.

TRAVEL INCORPORATING THE TRANSPORT OF EQUIPMENT ETC. DATA SHEET
Travel will be accepted as business travel where the employee performs
duties at a number of places requiring the transport and use of equipment Car Make & Model:
of substantial bulk, such as to justify the need for a motor vehicle to
transport it and where there are sound reasons for keeping the equipment Engine Capacity:
at home.
Name of Owner:
This rule would apply where, as a matter of convenience, the employee Date Purchased:
performs some work at home and transports papers, materials etc.,
(whether bulky or not) between home and work for that purpose. Cost:
Finance Details:

WHAT IS A CAR? Entry made by Name:

A motor cycle is excluded from the definition of a car. A car is a motor Signature:
vehicle (including a four-wheel drive) of any of these kinds:
— A motor car, station wagon, panel van, utility truck or similar vehicle Date:
(except a panel van or utility truck designed to carry a load of 1 tonne or Log Book –
more); or Period Begins
— Any other road vehicle designed to carry a load of less than 1 tonne or Log Book –
fewer than 9 passengers. Period Ends:
Substantiation does not apply to: Total Kilometres Travelled:
— A taxi, panel van, utility or any other non-passenger commercial vehicle Total Business kilometres:
used only for business purposes, and for traveling between home and
work; or Business Use %:
— A car that is part of the trading stock of a business of selling cars, and ODOMETER READINGS FOR EACH YEAR
used only in the business; or
— A car used only for lease or hire in a business of leasing or hiring; or
Odometer Reading Yr1 Yr2 Yr3 Yr4 Yr5
— An employer provides for ‘exclusive use’ of an employee for non-
business purposes which are subject to Fringe Benefits Tax. 1st July:
Date of Entry:
Signature:
30th June:
Date of Entry:
Signature:
 Start End Business Private EMPLOYMENT DUTIES OF AN ITINERANT NATURE
Journey Journey
Odometer Odometer Kilometres Kilometres It has long been acknowledged that travel from an employee’s home may
Start Date End Date
Reading Reading Travelled Travelled constitute business travel, where the nature of the office or employment is
inherently itinerant.

Common examples include commercial travellers and government

inspectors whose homes can be seen to be a base of operations from
which they travel to one of a number of locations throughout the day, over
a continuing period.

The main characteristics of an itinerant employee are:

— Travel is a fundamental part of their work;
— Has a web of workplaces;
— Continually moves from one place of work to another; or
— Is required to transport bulky equipment to each place of employment.

The ATO does not consider that agency nurses or relieving bank officers
are itinerant because they are not required to travel in the performance of
their work.

BUSINESS TRIP ON WAY TO OR FROM WORK

From time to time an employee has to visit clients, customers, etc. Return
travel from the employee’s usual place of employment, (e.g. office, surgery
etc.) will clearly constitute business travel in such circumstances. Where an
employee travels from home to a client’s premises, it will be accepted as
business travel where:

— The employee has a regular place of employment;

— The travel is undertaken to an alternative destination which is not itself
a regular place of employment;
— The journey is undertaken to a location at which the employee performs
substantial employment duties. It would not be accepted as business
travel where the employee merely performs incidental tasks enroute
such as collecting newspapers or mail.

This applies equally to cases where an employee makes a dedicated

business call in the afternoon and travels from there to home, rather than
returning to the office.
NON-DEDUCTIBLE AND DEDUCTIBLE BUSINESS TRAVEL
Purpose of Trip Driver

WHAT IS BUSINESS TRAVEL?

Business travel is travel which is undertaken in gaining or producing your
assessable income or in carrying on a business. Travel between home and
a person’s regular place of employment is ordinarily private travel. While
travel to work is a necessary prerequisite to earning income, it is not
undertaken on the course of earning that income. Put at its simplest, travel
to work is private; travel on work is business. In order for a taxpayer to
claim their business travel, they must provide evidence that they have
undertaken business kilometres. Business kilometres are the kilometres a
car travelled in the course of producing your assessable income in an
income year. The fact that public transport may not be available or may not
be readily available does not make the trip deductible travel.

TRAVEL WHILE ON STAND-BY DUTY:

The fact that an employee may travel to and from work in response to a call
while on stand-by duty would not ordinarily alter the character of that travel,
i.e. it remains private non-deductible travel.

TRAVEL BETWEEN TWO PLACES OF EMPLOYMENT/BUSINESS:

Travel directly between two places of employment, two places of business,
or a place of employment and a place of business will generally be
accepted as business travel where a person does not live at either of the
places and the travel has been undertaken for the purpose of enabling the
person to engage in income-producing activities.
 Start End Business Private
Journey Journey Purpose of Trip Driver
Odometer Odometer Kilometres Kilometres
Start Date End Date
Reading Reading Travelled Travelled
 Start End Business Private
Journey Journey Purpose of Trip Driver
Odometer Odometer Kilometres Kilometres
Start Date End Date
Reading Reading Travelled Travelled
 Start End Business Private
Journey Journey Purpose of Trip Driver
Odometer Odometer Kilometres Kilometres
Start Date End Date
Reading Reading Travelled Travelled
 Start End Business Private
Journey Journey Purpose of Trip Driver
Odometer Odometer Kilometres Kilometres
Start Date End Date
Reading Reading Travelled Travelled
 Start End Business Private
Journey Journey Purpose of Trip Driver
Odometer Odometer Kilometres Kilometres
Start Date End Date
Reading Reading Travelled Travelled
 Start End Business Private
Journey Journey Purpose of Trip Driver
Odometer Odometer Kilometres Kilometres
Start Date End Date
Reading Reading Travelled Travelled
 Start End Business Private
Journey Journey Purpose of Trip Driver
Odometer Odometer Kilometres Kilometres
Start Date End Date
Reading Reading Travelled Travelled