Tracking Business Mileage for Maximum Tax Deductions

For many tradies, your vehicle is your most important tool. Whether you are driving between worksites, heading to the supply yard, or dropping off waste, these trips add up to significant costs that can be claimed on your tax return.

The Importance of the Logbook Method

If you use your vehicle for both work and personal errands, the logbook method is usually the best way to get a fair deduction. It requires you to record every trip for a continuous 12-week period, which then sets your business-use percentage for up to five years.

• Date of the journey
• Odometer reading at the start and end of the trip
• Total distance travelled in kilometres
• The specific reason for the journey (e.g., driving from site to supplier)

1. Start your 12-week logbook at the beginning of the financial year.
2. Keep all your fuel and repair receipts stored in a digital folder.
3. Check your odometer reading at the start and end of the financial year for annual reporting.
4. Review your logbook entries monthly to ensure no trips were missed.