The paper logbook is a traditional, accepted method of logging kilometres travelled for your tax claim. 

It has been widely used for decades and has been a trusted tool for many Australian taxpayers. Hundreds of different layouts are available, varying from pocket-sized books to printable forms.

However, the Australian Taxation Office’s approved GOFAR app is a modern and efficient alternative method which boasts fully automated tracking, revolutionising vehicle logbooks. 

Australian taxpayers are increasingly choosing to use this digital method, which is time-efficient and accurate. 

There are many logbook apps available, but the ATO-approved GOFAR app is one of the most popular, and with good reason, as you will find out.

Manual or Digital?

In this article, we will explore the features, benefits and drawbacks of each tool, in a head-to-head comparison, to help you make an informed decision.

Paper Logbook:

Manual data entry in a book or paper format.

Purchase here

GOFAR App:

Digital app, fully automated.

Download here

FEATURES	PAPER LOGBOOK	GOFAR APP
PRICE	Ranges from free to $10	Tiered subscription, from free to $15/month
FORMAT	Paper, manual entry	Digital, automated, real-time data
ACCURACY	User dependant, prone to errors	Very accurate
EFFICIENCY	User dependant, prone to errors	Very efficient
RELIABILITY	User dependant, prone to errors	Very reliable
EASE OF USE	Manual entries, requires diligence	Very easy to use
TRUST FACTOR	Yes, but prone to error	100%
MAXIMUM CLAIM	Only business kms travelled	Claim more than business travel
ATO COMPLIANT	Not always, prone to errors	ATO approved

Comparison Analysis:

1.    Price

The paper logbook is the cheaper option from the outset, but it is inefficient and antiquated.

It may result in long-term costs and you run the risk of errors, which exposes you to penalties, rejections and possible audits.

Wasted time is an irritating factor which can’t be understated.

 

The GOFAR app is free to download but offers limited service. It is efficient and reliable with minimum user effort.

To get full, automated benefits, we would recommend opting for a tiered subscription which offers additional features.

 

2.    Format

The paper logbook comes in a booklet which can be purchased at most supermarkets or ordered online.

You can also download free templates, or create your version, using a Word Processor.

In addition, you will need a writing tool to enter your data.

 

The GOFAR app is downloaded online, with instructions for quick setup on your phone.

You order the compatible adaptor separately, which plugs into your car and is charged by your car engine.

 

3.    Accuracy

The paper logbook is error-prone from the start.

Consistency is key to remaining compliant, coupled with a thorough understanding of the ATO’s stringent tax claim guidelines.

You run a high risk of your claim being rejected or penalised due to erroneous and unsubstantiated data.

You can be held accountable for future audits as a result of non-compliance and may even miss out on bigger tax claims due to the restrictions which come with manual logbooks.

 

As with most digital tools, the GOFAR app has been built for accuracy.

It logs all ATO-required data in real-time, so you never miss a detail.

It calculates your tax claim for each journey and maximises additional, eligible taxes.

The app does everything for you; all you have to do is allocate your journey accordingly.

 

4.    Efficiency

The paper logbook is cumbersome. There isn’t any other way to put it.

You have to carry it around with you and rely on consistent, accurate data logging.

You must be fully conversant with the ATO’s guidelines and understand how to calculate your final tax claim, using the appropriate rate, by apportioning your business use percentage.

 

The GOFAR app is built for efficiency.

It stays plugged into your car and never runs out of energy, even if your phone battery does.

As long as your car is moving, the distance travelled is being logged.

The app is intelligent enough to alert you of car issues, send you reminders for car services due and calculate your final tax claim.

 

5.    Reliability

We’ve already identified the paper logbook as being cumbersome since you have to carry it around with you on your daily journeys, along with a writing tool.

As a result, it runs the risk of being misplaced, damaged or lost, leading to frustration.

 

The GOFAR app lives in your phone and the adapter attaches securely to your car.

Even if your phone battery dies, the adapter continues working, meaning you can still access your journey information once your phone is charged.

It also backs up your information to the Cloud, in case you lose or damage your phone.

It doesn’t get more reliable than that!

 

6.    Ease of Use

The paper logbook is easy to use in theory but can become a tedious reality.

Manually logging and calculating distances travelled every time, is a chore!

Some paper logbooks don’t incorporate an expense column, so you may have to keep those details as a separate record.

 

The GOFAR app simplifies the process, with automated trip allocation. All you have to do is ‘swipe right’ to categorise your trips as ‘business use’ or ‘personal use’.

That’s it. Easy!

 

7.    Trust Factor

Paper logbooks have been used by taxpayers for decades.

Some people opt to continue using them for the familiarity and comfort factor.

Whilst this can’t be disputed, it’s worth noting that it won’t be long before they are phased out in favour of the more modern digital apps, as with everything else.

 

The GOFAR app has proven time and again that it is a trustworthy companion that goes beyond saving you money.

It is a much-needed anecdote for hectic work schedules and can be trusted beyond car tax claims.

 

8.    Maximum Claim

Understanding your tax return eligibility is crucial to maximising your payout.

Submitting accurate data and substantiated records positively impacts your eligibility criteria.

If you haven’t consistently recorded your data and expenses, you won’t be able to maximise your claim.

 

The GOFAR app excels in several key areas, including its capability to consistently maintain precise records, adhere to the strict guidelines set by the ATO and automatically calculate your final claim.

This ensures that you are not only compliant, but also maximises your tax break to its full potential.

 

9.    ATO Compliant

We already know that the paper logbook isn’t always ATO compliant, for several different reasons.

However, if you do choose to create your version, you must be vigilant in ensuring you have captured all information and clearly understood which method is best suited to your circumstances, between the Cents per Kilometre Method, or the Logbook Method.

It is worth taking the extra time to fully understand the rules and regulations.

 

The ATO-approved GOFAR app is fully compliant, providing peace of mind.

 

The Final Say

We love the tangible feel of a paper logbook.

It evokes a sense of comfortable familiarity and accomplishment when manually logging down car journeys.

However, it feels out of place, old-fashioned and burdensome in the modern world.

Despite the nostalgic appeal and element of control that the paper logbook provides, it remains time-consuming and error-prone: two undeniable drawbacks which can be debilitating when you are under time-pressure.

 

In comparison, we cannot help but embrace the more streamlined and efficient GOFAR app.

It comes equipped with a set of structured, accurate and productive tools which can’t compare to the paper logbook.

You retain a sense of control, whilst navigating your daily life with ease and precision.

It seamlessly integrates into your daily life and sets to work when you do, alleviating the stress associated with time-consuming paperwork and tax day deadlines.

Read more about and download the ATO approved GOFAR app here.