2022 Tax - Motor Vehicle Travel and Log Books

In the 2022 (current) tax year with all the changes in travel Covid has caused, the ATO has advised that it is going to be focused on deduction claims for Motor Vehicle Travel and review Motor Vehicle Log Books.

We would like to ensure that all clients have the right data this year to be able to make a claim using the Cents Per Kilometre method or Log Book Method. It is essential that you keep the correct documentation, please do not hesitate to contact our office if you need to check on any of the details or requirements.

Cents Per Kilometre Method of claiming - limit of 5,000kms per vehicle
Claiming travel under the "Cents Per Kilometre Method” please ensure you keep the following records:
1.    The date you travelled
2.     The description of where you travelled i.e., Office @660 The Entrance Road Wamberal to seminar in Unit X Mann Street Gosford (make sure it is clear as to why its work related)
3.     The total Kilometres travelled in the trip
4.     Keep this record for the minimum five-year period

Log Book Method of claiming
When claiming Travel under the "Book Method”, it is critical that you have a log book covering a consecutive 12-week period (3 months) and that your log book has the right amount of detail - otherwise the ATO will refuse to accept it and we will not be able to claim your vehicle.

Your log book MUST have the following information recorded for each time you turn the key on in the car (no cheating by recording a return trip of a full day):
1.     The date of your travel
2.     A detailed description of the travel and the address you went from and to i.e., Visit to accountant office at 99 Georgiana Terrace Gosford to 660 The Entrance Road Wamberal
3.     The Opening odometer reading at the start of the trip
4.     The Closing odometer reading when you arrive at the Accountants office
5.     At 30 June every tax year that you want to keep using the log book you must record the closing odometer reading - this documents that your travel each year is consistent i.e., you average 20,000 kilometres each year.
6.     All evidence of the expenses paid on the vehicle MUST be kept and be legible (they must be original receipts as we can't use credit card or bank statements). Payment records to keep include:
a.     Fuel receipts - these fade so take photos if necessary
b.     Registration, Insurance and CTP costs
c.     Repairs and services including new tyres etc
d.     Lease and loan payments on your vehicle
e.     Parking and tolls paid
f.     Any other costs from washing and cleaning your vehicle to car seat covers etc

Please feel free to contact our office for a log book example. There are also log book apps available on a smart phone, such as DriversNote, which will significantly assist in reducing the work load as they automatically sense and enter the address you are at and can record the distance travelled.