# Logbook changes due to COVID-19



## WestSydGuy (Jun 7, 2018)

So, like a lot of part time drivers, my income, business usage, fuel usage, has dropped dramatically with covid-19. However my rego, CTP, car servicing, washing, repairs and insurance have remained the same. How should we approach the upcoming BAS and 19-20 tax return? 

My understanding is the logbook can be used for 5 years, but when can we change it? Can we change the logbook 3 months before we sell the car, then pay less GST back, I’m guessing the ATO would prefer we keep the business usage the same throughout ownership?


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## Jack Malarkey (Jan 11, 2016)

Australian Taxation Office:

_'Each logbook you keep is valid for five years, but you may start a new logbook at any time.'

(https://www.ato.gov.au/Business/Inc...le-expenses/Logbook-method/#Logbooktimeframe1)_

Note that you need to adjust your business proportion if the minimum 12-week period isn't representative of your business use for the whole income year.

Once you have established the extent of business use of the car during the 12-week log book period, you still need to make a reasonable estimate of the business kilometres travelled during the income year.

The estimate must take into account all relevant matters including seasonal factors, holidays and any significant variations in the pattern of use of the car.

The adjustments you make for fuel expenses can differ from those for other expenses. Keep a contemporaneous and dated record of your apportionment method.

(Normally, this adjustment based on a reasonable estimate doesn't loom large in the scheme of things but it does loom large in unusual circumstances such as the present.)

Log books are required in the context of substantiating income tax car deductions but are NOT required for GST purposes. They can, however, be helpful for apportionment purposes when claiming GST credits.

If you claimed a full or partial GST credit on purchase of the vehicle, you need to charge and remit GST on its sale. The amount charged is 10% of the sale price: private use apportionments are irrelevant in this context.

(https://www.ato.gov.au/Business/GST...osingofamotorvehicle#Disposingofamotorvehicle)


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