Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
DE 10: Variance during logbook term
or “Changes in business use of your vehicle may require ending your logbook term early”
You could also call this:

“How to handle a replacement vehicle for business use calculations”

If you replace your motor vehicle, you can treat the new vehicle the same way as the old one when figuring out how much you use it for business. This is allowed if two things are true:

  1. Your logbook is likely to show how much you typically use the vehicle for business for the rest of the time you’re meant to keep the logbook.

  2. From the day you start using the new vehicle, you keep a record of how far it travels in total. You need to do this for each year, or part of a year, that’s left in your logbook period.

This rule helps you keep track of your business use when you change vehicles, without having to start a whole new logbook.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: DE 12: Kilometre rate method

or “How to calculate tax deductions for business use of your car”
Next

Part D Deductions
Motor vehicle expenditure

DE 11Replacement vehicles

  1. For the purpose of establishing the proportion of business use of a motor vehicle, a replacement vehicle is treated in the same way as the vehicle it replaces if—

  2. the logbook is likely to be representative of the average travel for business purposes for the remainder of the logbook term; and
    1. from the date of replacement, a person keeps a record of the total distance travelled by the replacement vehicle for each income year, or part of an income year, of the remaining logbook term.

      Compare