Extra Tax Deduction of $3466

In this example, we used the ATO's calculator and found that keeping a logbook increased our tax deduction by $3466 compared to the next-best method.

We entered data for tax year 2005-06 for our imaginary taxpayer Rex (based on a real person).

  • Rex owns a Toyota he bought for $35000 in 2003
  • He did 25,000 km in that year
  • He spent $8000 on fuel, maintenance, and other vehicle expenses
  • The vehicle lost $5000 in value

Rex uses his car 60% of the time for business.

If Rex uses the one-third of actual expenses method, he can claim a $4334 deduction.

If Rex uses the logbook method, he can claim a $7800 deduction - an extra $3466.

Screenshot of ATO website showing $7800 deduction

Record Every Trip

If Rex didn't bother to record some trips, then his Business Use Percentage would fall.

Failing to record only 2500km of business use would drop his deduction by $1300.

Sidebuddy makes it easier for you to make sure every trip is recorded.

Screenshot of ATO website showing only $6500 deduction