The ATO has explicitly stated that work-related car expenses are on their "hit list" for 2026. A simple mistake or missing document can trigger an audit, leading to denied claims and potential penalties. Here is how to keep your claim bulletproof.
1. Keep a Valid Logbook
A "valid" logbook must cover 12 continuous weeks. For every single journey, you must record:
- Date
- Start and end odometer readings
- Kilometres travelled
- Reason for the journey (be specific! "Work" is not enough. Use "Client meeting with XYZ Corp" or "Travel to site B").
Your logbook is valid for 5 years unless your usage changes significantly.
2. Keep Every Receipt
Bank statements are generally not enough. The ATO wants to see detailed receipts that show the supplier, amount, date, and nature of the goods (e.g., "Fuel"). Take a photo of every petrol docket immediately—thermal paper fades!
3. Distinguish Carrying Bulky Tools
You generally cannot claim travel between home and work. The exception is if you are required to carry bulky tools and there is no secure storage at work. This is a common audit trap—ensure you meet both criteria.
4. Own the Car
You can only claim expenses for a car you own or lease. You cannot claim expenses for a car provided by your employer under a salary sacrifice arrangement.
5. Use Technology
Handwritten logbooks are prone to errors and harder to verify. Using an app like Tax Tracker provides digital timestamps and GPS verification, adding a layer of credibility to your records that auditors appreciate.