Private ruling: : Work related expenses - motor vehicle deductions
Date of advice: 23 August 2023
Published: 9 October 2023
Ruling period: 30 June XXXX
Date scheme commenced: 01 July XXXX

Ruling: Q1: Can I use my logbook from my vehicle that was destroyed to determine the work-related use of my new car for the purposes of calculating my allowable deduction for motor vehicle expenses under section 8-1 of the Income Tax Assessment 1997? | A1: Yes, a logbook is valid for up to five years, if you get a new car during the five years, you can nominate the new car to replace the original car. As your previous car was destroyed during that five-year period that your logbook is valid for, you can use the logbook to determine the work-related use of your new car. At the end of the five-year period, you will need to start a new logbook. If your circumstances change, such as a change in the type of work undertaken by your business, you may need a new logbook.

Relevant facts and circumstances: You are a disability support worker. You use your vehicle for work purposes to support clients. Your vehicle is used for work and personal use. You completed a logbook as required for 3 months. Your vehicle was involved in a traffic accident during the five-year period that your logbook is valid for and your insurance company classed the damage as not at fault total loss. You now have a new vehicle which you use for work and private purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 TR 2020/1