Taxpayers can claim motor vehicle expenses based on two methods, cents per kilometre or the log book method. The cents per kilometre method is limited to claiming a maximum of 5,000 work-related or business related kilometres travelled at the ATO allowed deduction claim of $0.66 per kilometre.

If a small business wants to maximize their motor vehicle deduction claims they need to keep a log book for each vehicle. For most businesses the log book method of claiming motor vehicle expenses will result in the biggest deduction.

With the logbook method:

  • You use the logbook records of your car’s business related usage to claim the business-use percentage of each motor vehicle expense.
  • The logbook must be kept to work out the business use percentage.
  • You must have written evidence (receipts) for the motor vehicle expenses including fuel, repairs, and insurance.
  • A logbook must be kept for a 12 week period and is valid for five years.
  • The logbook must record the motor vehicle’s odometer readings at the start and end of the logbook period.
  • The logbook can be recorded on paper or excel, can be a purchased log book from a stationery retailer, or an app on your smartphone.

Fleetcare have Australia’s first free and ATO compliant vehicle logbook app, Logit. This logbook app makes keeping a vehicle logbook on your smart phone using GPS easy. Further details can be found at Fleet Care.


View all Tax Tips

Key Services

View all services