Claiming your car for work? Let’s get your logbook right
In order to claim your running costs of your car such as:
Fuel and oil
Repairs and servicing
Registration
Insurance
Vehicle depreciation (decline in value)
Interest on a motor vehicle loan
You are required to keep a valid logbook to ensure you are claiming your work-related percentage for your car.
Your logbook must cover at a minimum 12 continuous weeks. If you started using your car for work-related purposes less than 12 weeks before the end of the year, you can extend the 12-week period into the next income year.
Your logbook is valid for five years. However, if your circumstances change (for example, if you change jobs or move to a new house or buy a new car), the logbook is no longer representative of your work-related use, you will need to complete a new 12-week logbook.
If you are using the logbook method for two or more cars, keep a logbook for each car and make sure they cover the same period.
You can keep an electronic logbook by using logbook apps, a spreadsheet or simply buy a logbook from Officeworks.
Your work-related percentage is worked out by:
Calculating the total number of kilometres you travelled during the logbook period (a)
Calculating the number of kilometres you travelled for allowable work-related trips during the logbook period (b)
Dividing the amount at (b) by the amount (a) then multiply this figure by 100.
Once you've calculated your work-related percentage, this is the percentage you can claim your running costs at.
You can claim fuel and oil costs based on either your
Actual receipts
Estimate of your expenses using the odometer records that show readings from the start and the end of the period you had the car during the income year
You need to keep records for all other expenses for the car.
Your logbook must contain:
When the logbook period begins and ends
The car’s odometer readings at the start and end of the logbook period
The total number of kilometres the car travelled during the logbook period
The number of kilometres travelled for each journey. If you make two or more journeys in a row on the same day, you can record them as a single journey
The odometer readings at the start and end of each subsequent income year your logbook is valid for
The business-use percentage for the logbook period
The make, model, engine capacity and registration number of the car.
Didn’t keep a logbook? You can claim Cents per kilometre method
Cents per kilometre method
You can each claim up to a maximum of 5,000 business kilometres without a logbook. This method doesn't require written evidence to show exactly how many kilometres you travelled (but the ATO may ask you to show how you worked out your work-related kilometres, for example diary records)
This method uses a rate that takes all your vehicle running expenses (including registration, fuel, servicing and insurance) and depreciation into account.
A single rate is used, the rate is:
88 cents per kilometre from 1 July 2022 for the 2024–25 income year
85 cents per kilometre from 1 July 2022 for the 2023–24 income year
78 cents per kilometre from 1 July 2022 for the 2022–23 income year
72 cents per kilometre from 1 July 2020 for the 2020–21 and 2021–22 income years
The cents per kilmoetre method is a simpler method to claim you car, usually this claim is a lot less than what you can claim if you keep a valid logbook.