Key takeaways
- Under the ATO logbook method, your car deduction equals your business-use percentage multiplied by your total car expenses, so you need expense receipts as well as a trip log.
- The ATO accepts photos of receipts as records, as long as each one is a true and clear copy of the original.
- You must keep car expense records for 5 years from the date you lodge your tax return.
- CarSavvy keeps trips in the Trip Journal and expenses in a separate Expense Journal. AI Quick Capture reads a receipt photo, pulls out the amount, date and merchant, and files it in the Expense Journal automatically.
- AI Quick Capture is included in CarSavvy's Forever Free plan, which allows 15 trips a month. Paid plans add unlimited trip tracking.
A logbook app with receipt capture records both halves of an ATO car claim: the trips you drive and the money you spend. Most logbook apps only track kilometres, which leaves you chasing fuel, servicing and rego receipts at tax time.
This guide is for employees, tradies, sole traders and small businesses who use the logbook method. You'll learn why expense records matter as much as trip records, what the ATO accepts, and how CarSavvy's AI Quick Capture turns a photo into an ATO-ready record.
Why isn't a kilometre log enough for a car tax claim?
A kilometre log only proves your business-use percentage. Under the logbook method, the ATO applies that percentage to your actual car expenses for the year. Without receipts for fuel, servicing, rego, insurance and other costs, you have no total to apply the percentage to, and the ATO can reduce or disallow the claim.
The logbook method formula
Your deduction is worked out in two steps:
- Business-use percentage = work kilometres ÷ total kilometres in your 12-week logbook period.
- Deduction = business-use percentage × total car expenses for the year.
The ATO says you need receipts for fuel and oil, or a reasonable estimate based on odometer readings. You also need receipts for other expenses such as registration, insurance, servicing, tyres, repairs and interest.
When the logbook method beats cents per km
The cents per kilometre method needs no receipts, but it's capped. For 2026–27 the rate is 91 cents per km, up from 88 cents in 2025–26. You can claim up to 5,000 work kilometres per car, which works out to a maximum claim of $4,550.
The logbook method has no kilometre cap. It usually suits high-kilometre drivers, tradies and people with expensive cars to run. See our guide to cents per km vs the logbook method.
Example
Sam's logbook shows 60% business use and $12,000 in car costs for the year, so Sam can claim $7,200. If Sam loses $1,500 of servicing and tyre receipts, the provable total drops to $10,500 and the claim falls to $6,300. That's $900 of deductions gone (illustrative figures only).
How does a logbook app with receipt capture work?
A logbook app with receipt capture tracks your trips and turns receipt photos into expense records. In CarSavvy, trips are logged in the Trip Journal. Receipts go into a separate Expense Journal: you photograph a receipt, and AI Quick Capture reads the amount, date and merchant and files it for you.
Two journals, one app
CarSavvy keeps trips and expenses in two separate journals. The Trip Journal is your logbook. The Expense Journal holds your receipts. Each has its own report, so you export them separately at tax time.
| Journal | What it records | What it proves | Report |
|---|---|---|---|
| Trip Journal | Trips, odometer readings, trip purpose | Your business-use percentage | Trip (logbook) report |
| Expense Journal | Receipts from Quick Capture | Your total car expenses | Expense report |
How AI Quick Capture works in four steps
- Snap itTake a photo of any car receipt: fuel, tolls, parking, servicing, rego or insurance.
- AI reads itQuick Capture extracts the amount, date and merchant in the background, with no typing.
- It files itselfThe expense lands in your Expense Journal, categorised and dated.
- Export at tax timeDownload your expense report from the Expense Journal as a CSV, and your trip report from the Trip Journal, for your tax return, reimbursements or accountant.
Why capture at the point of purchase?
Receipts get lost, and thermal paper fades. Snapping a receipt when you pay, before it hits the glovebox, gives you a clear, dated, backed-up record straight away. Learn more about CarSavvy's expense tracking.
Which car expenses should you capture?
Capture every running cost for the car you're claiming, not just fuel. Under the logbook method, the ATO lets you claim your business-use share of running costs plus decline in value. The more complete your expense record, the larger the total your percentage applies to.
| Expense | Receipt needed? | Capture tip |
|---|---|---|
| Fuel and oil | Yes, or odometer-based estimate | Snap at the pump |
| Rego and CTP | Yes | Snap the renewal notice |
| Insurance | Yes | Capture the annual invoice |
| Servicing and repairs | Yes | Snap before you leave the workshop |
| Tyres | Yes | Include fitting costs |
| Lease or loan interest | Yes | Save the annual statement |
| Car purchase price | Yes (for decline in value) | Capture the purchase contract |
| Parking and tolls | Yes, for work trips | Claimed separately, not by percentage |
Source: ATO, Logbook method (updated 12 June 2026) and D2 Work-related travel expenses 2026. Work-related parking and tolls are claimed separately as travel expenses. Parking at your regular workplace and tolls between home and work aren't deductible.
Are photos of receipts accepted by the ATO?
Yes. The ATO accepts records kept in paper or electronic form, including photos of receipts. Each copy must be a true and clear copy of the original. You must keep your records for 5 years from the date you lodge your tax return, so a backed-up digital copy is often safer than paper.
What makes a receipt photo "true and clear"?
- The supplier's name, date, amount and what you bought are all readable.
- The whole receipt is in frame, with no cropped totals.
- The image isn't blurry, dark or covered by glare.
See the ATO's guide to records you need to keep.
Watch out
A photo is only as good as the receipt. Thermal receipts can fade within months, so capture them on the day. If the AI reads a figure wrong, fix it in the Expense Journal before you export.
How does CarSavvy compare with Driversnote?
Both apps track trips automatically and produce ATO-compliant logbook reports. The difference is expenses. Driversnote focuses on kilometres, so you record car costs somewhere else. CarSavvy logs trips in its Trip Journal and captures receipts with AI into a separate Expense Journal, so both halves of a logbook claim are in one app.
| Feature | CarSavvy | Driversnote |
|---|---|---|
| Automatic trip tracking | Yes | Yes |
| ATO-compliant logbook report | Yes | Yes |
| Built-in expense journal | Yes | No |
| AI receipt capture | Yes (free plan) | No |
Based on each app's website, checked September 2026. Features change, so check before you choose.
If you only need kilometres, either app will do the job. If you want your full deduction covered in one app, you need expense records too. Read the full CarSavvy vs Driversnote comparison.
Is CarSavvy's logbook app with receipt capture free?
Yes. AI Quick Capture is included in CarSavvy's Forever Free plan, along with expense tracking and trip and expense tax reports. The free plan covers up to 5 cars but allows 15 trips a month. If you drive more than that during your 12-week logbook period, a paid plan adds unlimited trip tracking.
| Plan | Price (AUD) | Cars | Trips | AI receipt capture |
|---|---|---|---|---|
| Forever Free | $0 | Up to 5 | 15 a month | Yes |
| Basic | $5.10/mth annually or $6.00 monthly | Up to 8 | Unlimited | Yes |
| Premium | $10.20/mth annually or $12.00 monthly | Up to 10 | Unlimited | Yes |
Source: CarSavvy pricing page, September 2026. Prices may change.
See the current CarSavvy pricing.
For businesses
Basic lets you add trip tracking team members for $5.10 a month each. Premium covers up to 10 cars, with extra car slots available. Sole traders use the same car expense methods as individuals, but companies and trusts follow different rules and fringe benefits tax may apply, so check with your accountant.
How do you get started with CarSavvy?
Getting started takes a few minutes. Download the app, add your car and turn on automatic drive detection. Then snap each car receipt with Quick Capture as you go. After 12 weeks, or at tax time, export your trip report from the Trip Journal and your expense report from the Expense Journal.
- Download and add your carEnter the make, model and starting odometer reading.
- Turn on automatic drive detectionTrips are recorded in the Trip Journal. Set a work schedule so they're sorted into business or personal.
- Snap receipts as you goUse Quick Capture for fuel, servicing, rego and insurance. They're filed in the Expense Journal.
- Export your reportsDownload your trip report and your expense report at the 12-week mark and again at tax time.
New to logbooks? Read how to keep an ATO-compliant logbook.
Frequently asked questions
Does the ATO accept logbook apps?
Yes. The ATO accepts electronic logbooks, including apps, as long as they record the required details. For each work trip, that means the start and end dates, odometer readings, kilometres travelled and the reason for the trip. The logbook also needs odometer readings at the start and end of the logbook period, and the total kilometres travelled.
How long is a car logbook valid for?
A logbook is valid for 5 years. You'll need a new 12-week logbook sooner if your circumstances change and the old one no longer reflects your work travel, such as after a new job or a new car. You still need odometer readings and expense receipts for each year you claim.
Do I need to keep the paper receipt after I take a photo?
Generally, no. The ATO recognises photos of receipts as records, provided each photo is a true and clear copy of the original. Keep your digital copies for 5 years from the date you lodge your return. If your situation is unusual, confirm with your tax agent.
Can I use AI Quick Capture for work reimbursements?
Yes. Quick Capture creates dated, categorised expense records that you can export as a CSV report. That makes it useful for claiming car costs back from your employer, not just for your tax return. Check your employer's reimbursement policy for the format they need.
What should I look for in a logbook app?
Look for automatic trip tracking, a report with every detail the ATO requires, and expense capture. The trip log proves your business-use percentage, and receipts prove the costs that percentage applies to. An app that does both saves you rebuilding your expenses from a shoebox at tax time.
Can I switch from cents per km to the logbook method?
Yes. You choose a method each income year for each car, so you can switch. To use the logbook method, you need a valid 12-week logbook and records of your actual car expenses. Start capturing receipts early so your first logbook year has a complete expense record.
The bottom line
A trip log without expense records is only half a logbook claim. The ATO works out your deduction from your business-use percentage and your actual car costs, so every missing receipt reduces what you can claim.
A logbook app with receipt capture keeps both halves in one app. Start your next 12-week logbook with CarSavvy, and snap every car receipt from day one.
Ready to capture every car expense?
Log trips in the Trip Journal and snap receipts into the Expense Journal, all in one free app.
Download CarSavvy free →Sources
- Australian Taxation Office, "Logbook method", https://www.ato.gov.au/…/logbook-method (accessed September 2026)
- Australian Taxation Office, "Cents per kilometre method", https://www.ato.gov.au/…/cents-per-kilometre-method (accessed September 2026)
- Australian Taxation Office, "Records you need to keep", https://www.ato.gov.au/…/records-you-need-to-keep (accessed September 2026)
- Australian Taxation Office, "D2 Work-related travel expenses 2026", https://www.ato.gov.au/…/d2-work-related-travel-expenses-2026 (accessed September 2026)
- Australian Taxation Office, "Expenses for parking, tolls, accidents, licence and fines", https://www.ato.gov.au/…/expenses-for-parking-tolls-accidents-licence-and-fines (accessed September 2026)
- CarSavvy, "Pricing", https://carsavvy.app/pricing/ (accessed September 2026)
This article is general information only and does not consider your personal circumstances. Speak to a qualified professional before making financial decisions. Information current as of September 2026.
