Car expenses: cents per km or logbook?

If you use your own car for work, you may be able to claim a deduction. There are two methods, and choosing the right one can make a big difference to your refund.

What counts as work travel

Driving between different workplaces, visiting clients or customers, or carrying bulky tools you need for work usually counts. Normal trips between home and your regular workplace generally do not, even if you do some work on the way.

Method 1: cents per kilometre

• The rate for 2024–25 and 2025–26 is 88 cents per kilometre.
• You can claim up to 5,000 work kilometres per car, so the maximum claim is $4,400.
• You don't need receipts, but you must be able to show how you worked out your work kilometres, for example with a diary of trips.
• The rate covers all running costs, including fuel, rego, insurance, servicing and depreciation.

Method 2: logbook

• Keep a logbook for a continuous 12-week period that represents your normal travel. It can then be used for up to five years, unless your work travel changes.
• Your work-use percentage from the logbook applies to your actual car costs: fuel, rego, insurance, repairs, loan interest or lease payments, and depreciation.
• You need receipts for your expenses, and odometer readings at the start and end of each year.

Which is better?

Cents per km is simple and suits people who drive less than 5,000 work kilometres. The logbook method often gives a bigger deduction if you drive a lot for work or have a more expensive car. Some tradies and sales people claim several thousand dollars more with a logbook.

Bring your logbook, receipts or trip records to your appointment and we'll work out both methods for you.

This article is general information only and does not take your personal circumstances into account. It is not financial or tax advice. Tax rules change, so please contact us before acting on it. Information current as at the date above.