The Logbook Trap: When “Set and Forget” Costs You
Liz Gibbs • April 6, 2026

Why your car logbook could quietly be costing you money—or triggering ATO risk

Most business owners think once their car logbook is done… it’s done. Locked in. Filed away. Job finished. But here’s the truth—this is one of the most common silent mistakes we see. And it can cost you more than you realise.


The logbook method is powerful. It lets you claim a fair share of your car expenses—fuel, rego, insurance, depreciation—based on actual business use. And yes, a logbook can last up to five years.

 

But life doesn’t stay the same for five years… and neither does your car usage.We see it all the time:

  • You move house or change job sites
  • Your role shifts (less site work, more office—or vice versa)
  • You buy a new car and assume the old logbook still applies


Suddenly, that “accurate” logbook isn’t accurate anymore. And now you’re either:

  • Claiming too much → audit risk
  • Or claiming too little → leaving money on the table


It gets even trickier:

  • If you have multiple cars → each needs its own logbook
  • If you replace a car → you must formally nominate it in writing before lodging your return
  • If the car isn’t yours (employer car or novated lease) → you can’t claim anything at all


And beyond the logbook, the ATO expects proper records:

  • Odometer readings
  • Purchase details
  • Expense receipts or reasonable estimates


Miss this—and the whole claim can fall apart.  This isn’t about paperwork—it’s about control. A simple check today could:

  • Protect your deductions
  • Eliminate audit risk
  • Put real money back in your pocket

If your situation has changed—even slightly—it’s time to review your logbook. Because the smartest operators don’t guess… they stay ahead. pIf you’re unsure, reach out. We’ll make sure you’re claiming exactly what you should—no more, no less.


Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system, give us a call on 07 3289 1700, or email us at reception@rgaaccounting.com.au.We look forward to assisting you this tax season!


Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation. 


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