April 1, 2026 | Work Expenses

Claiming Motor Vehicle Expenses: Logbook Method

Key Takeaways

The **logbook method** allows you to claim the actual business percentage of ALL running costs (fuel, oil, insurance, rego, interest).
You must keep a logbook for a continuous **12-week period** that is representative of your travel.
Your logbook is valid for **5 years** unless your business travel changes significantly.

In 2026, with the cost of fuel and insurance at an all-time high, your motor vehicle deduction is likely one of your biggest tax claims. But are you using the best method? While the "Cents per Kilometre" method is simpler, it’s capped at 5,000km. If you travel more than that, the **Logbook Method** is usually the smarter move. Here is how to do it correctly for the 2026 tax year.

The 12-Week Logbook Rule

To use this method, you must have a logbook that covers at least 12 continuous weeks. This logbook determines your **"Business Use Percentage."** For example, if you drove 5,000km in the 12 weeks and 4,000km was for business, your business use is 80%.

What You Must Record in Every Entry

**Start and End Dates:** Of the 12-week period.
**Odometer Readings:** At the start and end of the period.
**Total Kilometres Traveled:** For every business journey.
**Reason for the Journey:** (e.g., "See client in Parramatta" or "Pick up supplies from Bunnings").
**Date of the Journey:** When the travel occurred.

What Expenses Can You Claim?

Once you have your business percentage (e.g., 80%), you can claim 80% of **EVERY expense** related to the car:

Fuel & Oil:** Even if you lose the receipts, you can use your logbook to estimate the amount.

Repairs & Maintenance:** (Tires, servicing).

Registration & Insurance:** The full annual costs.

Lease Payments or Interest:** On the car loan.

Depreciation:** (Decline in value of the car).

💡 Pro Tip: In 2026, stop using paper logbooks. We recommend using a GPS-connected app like **Driversnote** or **Logbook for Xero** to ensure your data is accurate and harder for the ATO to challenge.

Summary: Better Data, Bigger Deductions

While the logbook method takes a bit more effort upfront, it can easily lead to an extra $2,000-$5,000 in tax deductions for heavy business drivers. At PrepMyBook, we help our clients calculate which method will put more money back in their pocket. Let's make 2026 your biggest tax return year yet.

Optimize Your Vehicle Claims

Our tax specialists can help you review your logbook and identify every eligible vehicle expense. Let's ensure your car claim is audit-proof.
Talk to a Vehicle Tax Specialist