Your Ultimate Guide to Work-Related Expenses: Maximising Your Aussie Tax Return
October 9, 2023
The Ultimate Bookkeeping Worksheet: Your Financial Blueprint for Business Success
October 9, 2023
Hey there, savvy record-keepers! Whether you’re tallying up work-related travel, managing a rental property, or even logging your fitness journey, a log book serves as a valuable tool to document details, activities, and metrics. With a few quick scribbles, you can track progress, justify claims, and keep yourself accountable.
Types of Log Books:
- Car Expenses Log Book: Ideal for work-related travel, capturing all the details the ATO loves.
- Rental Property Log Book: For landlords, this one’s a keeper for managing repairs, tenant communications, and income.
- Fitness Log Book: Record your sets, reps, and personal bests to watch your progress soar.
- Academic Log Book: Perfect for researchers or students tracking study hours, experiments, or fieldwork.
- Medical Log Book: Handy for those tracking medications, symptoms, or medical visits for themselves or a family member.
- Travel Journal: Not just for sharing exotic photos online; a travel log can document expenses, experiences, and itinerary.
- Budget & Expense Tracker: Keep tabs on your spending habits to make better financial decisions.
General Format:
Regardless of its purpose, a good log book should have:
- Name: Your name or the name of the responsible party.
- Period: The specific period the log book covers.
- Purpose: Why are you keeping this log book? (E.g., work-related car expenses, academic research, etc.)
- Details: A column or section for the specifics—places, names, activities, and any additional information.
- Metrics: Quantifiable data like distance travelled, hours spent, money used, etc.
Example Entry:
| Date | Activity Detail | Metric (Time, Distance, Cost) | Notes |
|---|---|---|---|
| 01/07/2023 | Travelled to Client A | 25 km | Meeting re: Project X |
| 02/07/2023 | Gym – Cardio & Weights | 1.5 hours | New personal best in running |
| 03/07/2023 | Rental Property Repair | $150 | Fixed leaking tap |
By maintaining a detailed log book, you can not only keep track of key metrics but also prove them when needed—be it for tax claims, academic research, or personal progress.
Your Guide to Maximising Work-Related Car Expenses: Mastering the Logbook Method
Log Book Period: [Start Date] to [End Date] (Typically 12 Weeks)
| Week | Date | Trip Details (From-To) | Purpose of Trip | Odometer Start | Odometer End | Distance Travelled (km) |
|---|---|---|---|---|---|---|
| Week 1 | 01/07/2023 | Home to Client A | Meeting with Client A | 12000 | 12025 | 25 |
| Week 1 | 02/07/2023 | Office to Supplier | Pick up office supplies | 12040 | 12060 | 20 |
| Week 1 | 03/07/2023 | Office to Post Office | Mail client documents | 12065 | 12075 | 10 |
| Week | Date | Trip Details (From-To) | Purpose of Trip | Odometer Start | Odometer End | Distance Travelled (km) |
|---|---|---|---|---|---|---|
| Week 2 | 08/07/2023 | Office to Client B | Project consultation | 12100 | 12130 | 30 |
| Week 2 | 09/07/2023 | Home to Warehouse | Inventory check | 12140 | 12155 | 15 |
Totals for Log Book Period:
- Total Distance Travelled: [Sum of Distance Travelled] km
- Total Business Use Percentage: [(Business km/Total km) x 100] %
Hello, modern road warriors! If you’re driving for work, you don’t want to miss out on any potential tax deductions. Enter the Logbook Method—an ATO-approved way to keep tabs on your work-related car expenses. Below, we’ve summarised key points and created fresh content to guide you through this odometer adventure.
What the Logbook Method Is All About
The Logbook Method allows you to calculate the percentage of your vehicle’s usage for work-related purposes. You then apply this percentage to your total vehicle expenses for the year to figure out how much you can claim as a deduction.
Example:
Say you’ve travelled 11,000 kilometres during the income year. If 6,600 of these are for business purposes, that’s 60% of your travel (6,600 ÷ 11,000 x 100). If your total vehicle expenses amount to $9,000, you could claim $5,400 ($9,000 x 60%) as a deduction.
What to Include in Your Logbook
- Logbook Period: Start and end date.
- Odometer: Readings at the start and end of the logbook period.
- Distance: Total kilometres travelled and individual journey breakdowns.
- Business-Use Percentage: Calculation of work-related travel.
- Car Details: Make, model, engine capacity, and registration number.
For each journey, note the reason, dates, and odometer readings.
Logbook Timeframe and Validity
- Initial Year: Must keep a logbook for at least 12 continuous weeks.
- Representative Period: Chosen 12 weeks should reflect your usual driving pattern.
- Validity: Each logbook is valid for five years, but new circumstances may warrant a new logbook.
Multiple Cars & Depreciation
If you use more than one car for work, each car must have a logbook covering the same 12-week period. You can also claim the depreciation on your car, but only for the business use percentage. And yes, you may qualify for tax depreciation incentives, like temporary full expensing.
Keen to Know More? We’re All Ears!
If you have any questions, especially about tax-related logs, dial (08) 9258 8137 or shoot an email to admin@universaltaxation.com.au. We can help you make sure your records are up to snuff!
Happy logging! 📝💡
