IT’S LOGBOOK CHECK-IN TIME
If you use your vehicle for business related purposes, there are two methods for claiming a tax deduction
Cents per km method
Best for low-mileage work travel (under 5,000 km) as it’s simple, using a flat 88 cents per km (2024-25 and 2025-26).
For this method, you need to keep records that show how you work out your work-related kilometres, such as a diary.
Logbook method
Generally superior for high work-related mileage, allowing you to claim a percentage of actual expenses like fuel, servicing, and depreciation
The logbook method is an Australian Taxation Office (ATO) approved method to claim business-related car expenses by keeping a record of journeys for a 12-week period.
It determines the business-use percentage of total car costs (fuel, repairs, insurance, depreciation), which is valid for 5 years
Many people assume that once they’ve completed a logbook for their car, they’re set for the next five years when it comes to work-related car expenses.
However, this common misconception could mean you’re claiming more (or less) than you can at tax time
While logbooks can remain valid for five years, certain life changes require you to start fresh with a new one.
Relying on an outdated logbook that no longer reflects your actual work-related travel patterns can lead to incorrect claims.
You’ll need a new logbook if you change jobs, move to a new house or workplace or there are changes to your pattern of car use for work purposes.
If you’re claiming work-related car expenses for two or more vehicles, you must keep a separate logbook for each car, making sure these logbooks cover the same period for consistent record-keeping.
If you buy a new car during the income year and want to continue relying on your previous car’s logbook, you must make a written nomination before lodging your tax return.
TIP: If your employer provides your car or you salary sacrifice a car using a novated lease, you can’t claim work-related car expenses using the logbook or cents per kilometre methods. This is because you don’t own the car.
Electric and plug-in hybrid vehicles
If you use the EV home charging rate of 4.2 cents per kilometre (5.47 cents for 2026–2027) for a reasonable estimate based on odometer readings, you can’t claim any commercial charging costs.
For plug-in hybrid vehicles, a specific formula must be used to calculate home charging expenses.
Keeping accurate logbooks and records is essential for claiming the correct amount of work-related car expenses.
If you’ve experienced any changes to your work situation, living arrangements or car usage patterns, review whether your current logbook still accurately reflects your circumstances.
A link to the ATO website is provided below
