Hi, starting a new job as a contract courier and have to set up an ABN. I don’t have an accountant (anyone know a good one in the Shire) – my question is do I have to keep a log book for just one month or so I have to all the time for claiming expenses back?

Hi Mate, speaking with a good accountant is key as there are several methods of claiming. with the log book it is 3 months and will last you 5 years.

If you are a Pty ltd company, my understanding is you can claim 100% if its a commercial vehicle.

I have accountants i can recommend out west (Blacktown/ Oran park) if you get stuck. If you require finance for the van please let me know and i will be happy to help.

Regards,

Tareq

Damien P asked a similar question about a month ago - have a look at the thread there.
Generally speaking, as a courier you will have a van, which will qualify as a commercial vehicle. This has historically been accepted as 100% business/work use.
The ATO is trying to push for a log book to be done on these going forward with the same requirements as other vehicles. Just to prove you aren’t taking the van out for your surfing weekends, camping trips and standard run to the shops etc. (I can only assume they have never driven one, or parked them in a public area.)
Certainly find an accountant you can liaise with - don’t have to be too local these days with the technologies available.

https://www.ato.gov.au/business/income-and-deductions-for-business/deductions/motor-vehicle-expenses/claiming-motor-vehicle-expenses-as-a-sole-trader/

https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/Benchmarks-by-industry/Transport,-postal-and-warehousing/Courier-services/

these will come in handy. Remember that Big Brother has an extra $130m to audit people who claim "too much"....and remember that "too much" is what the ATO says it is.....so if you want to claim amounts that the ATO says are "too much" you can expect to get an audit......

And when you get an audit you are guilty until proven innocent: the presumption used to be that the ATO had to beleive you unless they had proof that you were not telling the truth. Now they are actively looking to hang you out to dry.

so the moral of this little rant is COVER YOUR ARSE!!!! get in front of a qualified tax agent and discuss the ins and outs of audits. And if the tax agent says "that'll never happen" run a mile. trust me, winter is coming with the ATO and anyone who uses a vehicle for work. So you need to be ready.

good luck

BC