For rideshare and delivery drivers, your car is your primary business tool. If you drive more than 5,000 kilometres per year for work, the Logbook Method is usually the most effective way to maximize your tax deductions. However, the Australian Taxation Office (ATO) is extremely strict about what makes a logbook “compliant.”

If your records are incomplete or inaccurate, you risk having your entire claim rejected during an audit. Here is your step-by-step guide to keeping a compliant logbook in 2026.

1. The “12-Week” Rule

To establish your business-use percentage, you must maintain a logbook for a minimum of 12 continuous weeks.

• Continuous means no gaps: You cannot skip weeks or pause for holidays. If you forget to record a week, the 12-week period is effectively invalidated, and you must start over.
• Representative Period: Your chosen 12 weeks should reflect your typical driving pattern for the entire year. If your rideshare habits change significantly (e.g., you start driving for more hours or change your primary operating area), you should start a new logbook.
• The “5-Year” Benefit: Once you have a valid 12-week logbook, it can remain valid for up to five years—provided your driving pattern doesn’t change materially. You must, however, record your odometer readings at the start (1 July) and end (30 June) of every financial year to calculate your business-use fraction annually.

2. Mandatory Trip Details

The ATO requires specific information for every single work-related trip. Vague entries like “rideshare” or “work” are often rejected. For every entry, you must record:

• The Date: When the trip took place.
• Odometer Readings: The reading at the very start and the very end of the trip.
• Kilometres Travelled: The total distance for that specific journey.
• Specific Business Purpose: Be descriptive. Instead of “work,” use something like “Rideshare passenger pickup/drop-off” or “Delivery transit.”

Crucial: You must also record the odometer reading at the start and end of the entire 12-week period. Many drivers track individual trips but forget to capture these “whole-period” figures, which the ATO requires to verify the total distance.

3. Digital vs. Paper Logs

The ATO accepts digital logbooks just as readily as paper ones, provided they contain all the required data fields.

• The Advantage of Apps: Modern tracking apps (such as Driversnote or CarSavvy) use GPS to automatically capture trip dates, times, and odometer readings. This eliminates the “human error” of forgetting to write down a start reading or mixing up personal and business kilometres.
• Consistency is Key: Whether you use an app or a physical notebook, ensure your records are kept as close to the time of travel as possible.

4. What You Can Claim (And What You Can’t)

By using the Logbook Method, you are establishing a business-use percentage (e.g., 70%). You then apply this percentage to your actual vehicle running costs for the year. This allows you to claim a portion of:

• Fuel and oil costs.
• Servicing, maintenance, and repairs.
• Registration and insurance premiums.
• Interest on your car loan or lease payments.
• Depreciation of the vehicle’s value.

Note: You must keep receipts or invoices for all these expenses to substantiate your claim.

Common Mistakes That Invalidate Logbooks

• Mixing Trip Types: You need to track personal travel during the 12-week period as well. While you don’t need to provide a “business purpose” for personal trips, the kilometres must be recorded to calculate your accurate business-use percentage.
• Incomplete Odometer Records: Missing the start-of-period or end-of-period odometer totals is the most common reason for audit failures.
• Using Outdated Records: If you have bought a new car or your work patterns have shifted (e.g., you stopped doing late-night shifts), your old 12-week logbook is no longer “representative,” and you must start a new one.

Disclaimer: This information is for general educational purposes and does not constitute tax advice. Because logbook requirements can be impacted by individual circumstances, always consult with a registered tax agent to ensure your records meet ATO requirements for your specific situation.