When it comes to vehicle expenses there are two methods to choose from;
Klm's Method
Logbook Method
You can only choose one method per financial year, however you can decide the method that provides the biggest claim, which is handy 😉
Step 1 - Choose your method
From Work Tank, select the 'logbook' tab, and then select which method you want to use. By default the klm's method is selected and all vehicle expenses will be $0 unless the logbook method is selected.
Step 2 - Set your claim
Klm's Method
If you select the klms method, you can claim a maximum of 5,000 klms per year at the ATO's prescribed rate. For example, if you claimed 3,300 klms in the 2021-22 financial year your deduction would be $2,376, being 3,300 x 72 cents.
Setting a klm's claim is super simple;
Step 1 - Adjust the slider to set your claim from 0 to 5,000 klms.
Step 2 - Select the 'Update' button to confirm
Don't worry, klm's and methods can be updated at any point in the year if circumstances change.
Please note, you're not 'required' to keep a logbook for this method, however the ATO can request you provide written evidence to show how you worked it out (for example, by producing diary records of work-related trips or using a logbook.. funny that..).
Logbook Method
Select 'Logbooks Results' and the 'Select Method' button to update the method of claim.
Selecting the logbook method will enable you to automatically claim all vehicle expenses, including interest on loans and depreciation, at the logbook percentage of claim (which can also be updated at anytime throughout the year).
This method requires a logbook to be kept for a minimum 12 week consecutive period, however that logbook remains current for 5 years unless your circumstances change.
If you have an existing logbook, simply set the percentage in the slider as follows;
Step 1 - Adjust the slider to set your claim from 0% to 100%
Step 2 - Select the 'Update' button to confirm
If you don't have a logbook, or need to complete a new logbook, you can select an estimate in the slider whilst you complete a logbook over the minimum 12 week period.
When your logbook is ready untick the 'I want to set the value manually' box and we will automatically calculate and apply the best claim percentage from the recorded trips in a consecutive 12 week period.
We will also update the claim percentage of any vehicle expenses already allocated in the current financial year to ensure you claim everything you're entitled to 😉