The logbook method is not all inclusive. This method allows you to claim the actual cost of each expense individually, including depreciation. You can only claim expenses directly related to business use, not private use. How do you know what percentage of your car use is business-related? That’s where the logbook comes in.

You must keep a logbook for a minimum continuous period of at least 12 weeks that are representative of your usual business activities. It can’t be the busiest 12 weeks of your business, or the slowest. It must be representative of the entire year. The entries over those 12 weeks will determine your business use percentage.

Imagine your 12-week logbook determined your car was being used for business 60% of the time. That means you can claim a 60% business deduction on your tax return for car expenses such as petrol and repairs.

This also means you have to keep expense receipts and record them.