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For Australian businesses, keep the tax invoice for a vehicle purchase, invoices or receipts for the vehicle expenses included in a claim, and records that support the vehicle’s business use and the GST calculation. If the vehicle is used privately as well, keep a logbook or other suitable usage records to support the creditable-purpose share. A paper logbook is not the only option.
Start with the right Australian GST evidence
This article covers Australian GST input tax credits; GST rules differ by country. The documents you need depend on whether you are claiming GST on acquiring the vehicle, on its running costs, or on both. Keep the source documents and the calculations that connect them to the amount claimed.
- Vehicle acquisition: keep the supplier’s tax invoice and relevant purchase, financing or lease documents.
- Running costs: keep invoices or receipts for the actual expenses included in the claim, such as fuel, repairs and servicing.
- Business-use share: keep trip, kilometre or other suitable usage records when the vehicle is not used entirely for creditable business purposes.
- Calculation: retain the workings showing the GST amount claimed and how any business-use or creditable-purpose percentage was applied.
The ATO’s vehicle-purchase guidance, last updated 29 May 2024, describes a GST credit on a vehicle purchase as generally requiring a tax invoice and GST registration. Its full-credit case also depends on the vehicle being used solely in carrying on the business. See the ATO guidance on purchasing a motor vehicle and claiming GST credits for the applicable conditions.
Documents for buying or leasing a vehicle
For a purchase GST credit, retain the supplier’s tax invoice. Keep related purchase or lease paperwork too, so the transaction and the vehicle involved can be identified. The invoice is acquisition evidence; it does not by itself establish that the business is entitled to claim the full GST amount.
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Eligibility and the claim amount depend on the business’s circumstances, including GST registration and the extent the vehicle is used for a creditable purpose. If use is mixed, keep usage evidence and the apportionment calculation alongside the invoice. Check current ATO requirements for the transaction and invoice rather than relying on older car-specific guidance for thresholds or procedures.
Receipts and invoices for vehicle running costs
For each running-cost GST amount claimed, keep the source document for the actual expense. Relevant records may include invoices or receipts for fuel, repairs, servicing, insurance and other vehicle costs. Keep the underlying documents, not only a bookkeeping summary or a total entered in a spreadsheet.
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Also preserve the calculation that links each expense to the GST credit claimed, including any reduction for private or other non-creditable use. An estimate or an income-tax calculation method does not automatically substantiate a GST credit based on actual expenses; the evidence needs to support the GST claim being made.
How to document mixed business and private use
If a vehicle has private use, keep records that show the relevant business or enterprise use in relation to total use, and retain the working that derives the claimed share. The credit is limited to the extent of creditable purpose. An income-tax business-kilometre figure may not always match that share: travel unrelated to creditable enterprise activity can require a reduction.
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The ATO describes vehicle cost records and usage evidence in its record-keeping guidance for motor vehicle expenses. Its public ruling, GSTR 2006/4, discusses working out the extent of creditable purpose and records to support it. Choose records that fit the method used and let someone follow how you reached the percentage and credit amount.
Paper logbook, electronic logbook or other records?
A logbook is one way to support a business-use calculation, but it is not the only format. The ATO’s vehicle record-keeping material recognizes electronic logbook records and other records that adequately support the claim. No particular logbook product is required.
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| Record method | What to check |
|---|---|
| Paper logbook | It should capture the trip and distance information needed for the calculation, and be retained with supporting records. |
| Electronic logbook | Make sure the records are complete, retrievable and suitable for the method used; keep access to the underlying trip information. |
| Other suitable records | Use records that adequately show relevant business or enterprise use against total use and support the calculation. The ATO’s guidance does not make a single format compulsory. |
For any method, keep the source information and workings together. A percentage without records explaining how it was derived is harder to substantiate.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How long to keep the records
Australian Government business guidance says most business records should be kept for five years, although some records must be retained longer. The period is not a guarantee that every vehicle-related record can be destroyed after five years; circumstances and applicable rules can affect retention. See business.gov.au’s record-keeping guidance and check which period applies to your circumstances.
Before lodging the claim
- Match each claimed acquisition or running-cost credit to its invoice or receipt.
- Keep vehicle-use evidence that supports the creditable-purpose share, where apportionment is needed.
- Retain the calculation showing how the GST amount claimed was worked out.
- Store the records so they remain legible and retrievable for the applicable retention period.
For unusual ownership, lease or mixed-use arrangements, check current ATO guidance or consult a qualified Australian tax professional. Do not apply another country’s GST record rules to an Australian claim.
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