Digital Logbook Guide

The ATO accepts digital logbooks for the logbook method of claiming vehicle expenses. Track your business use percentage automatically and maximise your deductions.

What Is the Logbook Method?

The logbook method lets you claim the actual expenses of running a vehicle (fuel, insurance, registration, depreciation, interest on finance) multiplied by your business-use percentage. To determine that percentage, you keep a logbook for a continuous 12-week period.

The alternative — the cents-per-kilometre method — caps claims at 5,000 km × 88 cents = $4,400. For a financed truck or ute doing 40,000+ km per year with $20,000+ in running costs, the logbook method typically delivers a far larger deduction.

Example: Logbook vs Cents-per-km

A tradie's ute with $25,000 in annual expenses and 80% business use:
Logbook method: $25,000 × 80% = $20,000 deduction
Cents-per-km: 5,000 × $0.88 = $4,400 deduction
Difference: $15,600 extra deductions

ATO Logbook Rules

  • Must cover a continuous 12-week period that is representative of your typical driving
  • Must record every trip — business and personal — for the full 12 weeks
  • Each entry must include: date, odometer start/end, kilometres driven, purpose of trip, business or personal
  • A valid logbook lasts 5 years, unless your usage pattern changes significantly
  • The ATO accepts digital logbooks (apps) provided they record the required data
  • You must also keep records of all vehicle expenses for the year you're claiming

Digital Logbook Apps Compared

AppAuto-TrackingATO CompliantPlatformPrice
Driversnote✅ GPS auto-detect✅ YesiOS, AndroidFree (basic) / $69/yr (pro)
GOFAR✅ OBD2 device + app✅ YesiOS, Android$149 device + free app
Logbook Me⚠️ Manual entry✅ YesiOS, AndroidFree
ATO myDeductions⚠️ Manual entry✅ Yes (ATO's own)iOS, AndroidFree
Xero (via Hubdoc)⚠️ No auto-track✅ Records expensesWeb, iOS, AndroidPart of Xero subscription

Driversnote — Best for Most Users

Driversnote is the most popular digital logbook app in Australia. It uses your phone's GPS to automatically detect when you're driving and log the trip:

  • Auto-detect — starts logging when it detects vehicle motion, stops when you park
  • Classify later — mark trips as business or personal at the end of the day (or in bulk)
  • ATO report — generates a compliant logbook report with all required fields
  • Export — CSV, PDF, or direct to accountant
  • Free tier — tracks up to 30 trips/month; Pro ($69/year) is unlimited

GOFAR — Best for Accuracy

GOFAR uses a small OBD2 dongle that plugs into your vehicle's diagnostic port. It's more accurate than GPS-only tracking because it reads directly from the vehicle:

  • Accurate odometer — reads actual vehicle distance, not GPS approximations
  • Engine data — also tracks fuel economy, engine health, and driving patterns
  • No battery drain — powered by the OBD2 port, not your phone
  • One-time cost — $149 for the device, app is free forever

GOFAR is particularly suited to owner-drivers who want both a logbook and engine diagnostics in one device.

Tips for a Bulletproof Logbook

  • Choose a representative 12-week period — avoid holiday periods or unusually busy/quiet times
  • Start on a Monday — makes the 12-week period cleaner for reporting
  • Record odometer readings at start and end of the logbook period
  • Be specific with trip purposes — "client meeting at ABC Construction, Parramatta" is better than "work"
  • Don't forget personal trips — the ATO expects to see both; missing personal trips inflates your business percentage and triggers audit risk
  • Renew every 5 years — or sooner if your driving pattern changes (e.g., new job site, different vehicle)

Frequently Asked Questions

If the vehicle is used exclusively for business (e.g., a truck that never does personal trips), you don't need a logbook — you claim 100% of expenses. However, keeping one for the first 12 weeks provides documentation in case the ATO queries your claim.

Yes, but FBT logbook requirements differ slightly from income tax logbook requirements. For FBT on employer-provided vehicles, the logbook must cover the full FBT year (April–March) or a representative 12-week period within that year.

The logbook must be continuous and complete. If you miss trips, the ATO may reject the logbook entirely. Apps with automatic GPS tracking (like Driversnote or GOFAR) prevent this problem by logging every trip without manual input.

Yes. Under the logbook method, you can claim the business-use percentage of all actual expenses including finance interest (for chattel mortgage) or lease payments (for finance/operating lease), plus depreciation, fuel, insurance, and maintenance.

See How Finance Structure Affects Your Deductions

Our calculator models deductions across Chattel Mortgage, Finance Lease, and Operating Lease — including the expenses you'd claim via the logbook method.

Open Calculator →