The Australian Taxation Office continues to maintain the requirement that taxpayers keep adequate records to substantiate the claims made on their vehicle claims, along with the Tax Agent verifying these claims.
Essentially, there is a need to provide supporting documentation for verification.
The two main choices of claiming expenses for motor vehicles are:
Cents per km method
Limited to 5,000 kilometres;
Only need to record business kilometres;
No need to keep records of vehicle expenses; and
Odometer recording not required.
Log book method
A log book must be continuously completed over a 12 week period and must outline business/work related travel, along with private travel. This established pattern of deductible kilometres can be applied to your tax return for up to 5 years before another log book is required.
Expenses for car maintenance, fuel, registration, insurance etc. should be kept.
Odometer recordings are required.
Understanding this, WMC Accounting is pleased to offer our clients a simple method of recording such information - the Vehicle Log Book.
What do you need to do?
Simply complete the registration details below and we will send you a complimentary vehicle log book.
If you are using the cents per kilometre method, use the vehicle log book to record all business and work related travel for the year.
If you are using the log book method, record your business and personal travel continuously for a 12 week period.
Bring your completed vehicle log book with your other tax documents to your tax return appointment.