Work-related Car Deductions

To work out your deduction for car expenses, you can use either:

1. Cents / per km method

  • 2025/2026 FY 88c per kilometre
  • 2026/2027 FY 91c per kilometre

Historical cents/km:

  • 2015/16 FY 66c per kilometre
  • 2016/17 FY 66c per kilometre
  • 2017/18 FY 66c per kilometre
  • 2018/19 FY 68c per kilometre
  • 2019/20 FY 68c per kilometre
  • 2020/21 FY 72c per kilometre
  • 2021/22 FY 72c per kilometre
  • 2022/23 FY 78c per kilometre
  • 2023/24 FY 85c per kilometre
  • 2024/25 FY 88c per kilometre

2. Logbook method:

Use a logbook to calculate the percentage of car expenses by recording trips for 12 continuous weeks and your odometer records.
A physical logbook or a logbook app is acceptable by the ATO.
Excel spreadsheet or computer records which one can easily edit are generally not acceptable.

A new logbook is required every 5 years or when your job or circumstances change.

Trips to and from your workplace are normally not deductible, unless you have a home-based office, and you start or end your day’s work from your home. You must also substantiate this fact. Please discuss your situation with us if required.
You can claim the work-related percentage for the following:



  • fuel and car charging expenses

  • repairs, servicing, maintenance and cleaning expenses

  • rego & CTP
  • insurance

  • interest on a car loan (please provide the yearly statement from the bank/finance company)

  • lease payments if it is a leased vehicle

  • decline in value of the car.
  • Claiming electricity: If charging at home, you cannot simply claim your standard electricity bill. You must use the ATO-approved EV home-charging rate of $0.0547 per kilometre, applied to your work-related kilometres. If charging in public, you can claim the actual costs using receipts

Notes

Please keep receipts or other records of your car expenses for a minimum of 5 years. When the ATO asks for proof for the deductions, they are required to be presented.

Tolls and parking fees are to be reported separately. Please make sure you have toll statements and parking receipts to back the claims.