The ATO accepts digital logbooks for the logbook method of claiming vehicle expenses. Track your business use percentage automatically and maximise your deductions.
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.
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
| App | Auto-Tracking | ATO Compliant | Platform | Price |
|---|---|---|---|---|
| Driversnote | ✅ GPS auto-detect | ✅ Yes | iOS, Android | Free (basic) / $69/yr (pro) |
| GOFAR | ✅ OBD2 device + app | ✅ Yes | iOS, Android | $149 device + free app |
| Logbook Me | ⚠️ Manual entry | ✅ Yes | iOS, Android | Free |
| ATO myDeductions | ⚠️ Manual entry | ✅ Yes (ATO's own) | iOS, Android | Free |
| Xero (via Hubdoc) | ⚠️ No auto-track | ✅ Records expenses | Web, iOS, Android | Part of Xero subscription |
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:
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:
GOFAR is particularly suited to owner-drivers who want both a logbook and engine diagnostics in one device.
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.
Our calculator models deductions across Chattel Mortgage, Finance Lease, and Operating Lease — including the expenses you'd claim via the logbook method.
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