Suitable for: Sole traders
Tax Difficulty: Easy
Airtax Experience: First-time users
Time to read: 2-3 minutes
The objective of the Logbook Method is to develop a Business Use Percentage that can be applied to your car expenses and determine the claimable amount for tax purposes.
The logbook tracks how you use one car over 12 continuous weeks, and should be representative of your travel throughout the year. All you need is access to a spreadsheet such as Excel or Google Sheets. If you elect to use Google Sheets, you will need to download the file or make a copy in order to use it.
How to use the Airtax Logbook:
Download the Logbook here and save it
When you start your logbook recordings:
Enter the starting odometer reading/mileage for the car you are using in cell I3, and
Record the date you begin your logbook recordings in H3.
Every trip you complete in your car for a business purpose only (e.g. start a day of driving for Uber) should be completed in a new row.
In each row, complete columns A to E. The total kilometres travelled in the given trip will total up automatically for you in column F.
Please note that only the trips you make for a BUSINESS PURPOSE are required to be recorded. Do not record trips that are personal in nature.
At the end of 12 weeks:
Enter your ending odometer reading in cell I4
Record the date you concluded your logbook recordings in H4
By following these simple steps, your spreadsheet will automatically calculate the following in the Summary section:
The Kilometres you travelled for Business,
Your Total Kilometres Travelled overall (for business and personal uses), and
Your overall Business Use Percentage for the 12 week period (highlighted in RED).
Once you have your Business Use Percentage, you can use it as you complete your BAS and Income Tax Returns - it is valid for five years.