Log book requirements for Trusts and Companies with non-exempt vehicles

Keeping a log book may be a better option than using the 20% statutory flat rate where the business usage for the vehicles is high.

Your logbook is valid for up to five years (assuming there is no major changes in the pattern of use) and needs to record details of the business use over a period of at least 12 consecutive weeks.

After the fifth year, you will need to start a new log book.

To ensure your logbook is effective and meets strict ATO requirements, the log book must contain:

1. The date the business trip commences and the opening odometer reading
2. The date the business trip concludes and the closing odometer reading
3. The number of business kilometres travelled in the business trip
4. Purpose of journey (do not just say “work”) eg client meeting, seminar attended
5. Records must show the make, model and registration number of the car

Tips

• For FBT Motor Vehicles you must remember to keep a declaration on file stating the opening and closing odometer reading during the FBT year (01 April to 31 March).